the role of cultural differences in the product and

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Växjö University School of Management and Economics Spring 2006 The Role of Cultural Differences in the Product and Promotion Adaptation Strategy: A L’Oréal Paris Case Study Tutor: Christine Lundberg Examiner: Jerzy Kociatkiewicz Authors: Lauranne Fina 840903 IBO305 Tytti Luc 840502 IBM342 Emilie Venezia 840413 IBM342

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Page 1: The Role of Cultural Differences in the Product and

Växjö University

School of Management and Economics

Spring 2006

The Role of Cultural Differences in the Product

and Promotion Adaptation Strategy:

A L’Oréal Paris Case Study

Tutor: Christine Lundberg

Examiner: Jerzy Kociatkiewicz

Authors:

Lauranne Fina 840903 IBO305

Tytti Luc 840502 IBM342

Emilie Venezia 840413 IBM342

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PREFACE

During this work, we experienced how to manage the relationships within our work

group in order to be efficient. Trust and collaboration have been the prerequisites for the

formation of this team. We considered this bachelor thesis as an ongoing process, where

all the parts of the paper have been rewritten many times.

This work enables us to see marketing from a new perspective, more complex, maybe

closer to the reality of companies.

We would like to thank the managers from L’Oréal, Edouard Laclavière, Valentin

Guillois, the manager located in Honk Hong, Ivan Coste-Manière, Iku, Aico, Mayumi,

Ying, Sun-Young, Ahra and Katrin that dedicated time to answer to our questions. We

are grateful to all these persons as they made the writing of this thesis possible.

We would like to thank our tutor, Christine Lundberg that helped us finding our way in

this process by providing us with good advice.

We would like to thank also Marie Thuriot and Isabelle Petit, from IPAG, Nice, who

answered from France to our emails and helped us in our researches orienting us to the

right websites and to the right persons.

Finally, we would like to thank our friends and relatives for their support,

comprehension and criticism.

Växjö, May 25th 2006

Emilie, Lauranne and Tytti

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EXECUTIVE SUMMARY

Bachelor thesis in Economics at Växjö University, 2006

Authors: Lauranne Fina, Tytti Luc and Emilie Venezia

Examiner: Jerzy Kociatkiewicz

Tutor: Christine Lundberg

Title: The Role of Cultural Differences in the Product and Promotion Adaptation

Strategy: A L’Oréal Paris Case Study

Introduction: Nowadays, firms are becoming more and more global. However, are

consumers becoming global too? Therefore, the challenge for the firms consists in

determining if they should adapt their products or if they should consider the consumers

as being global, and keep their product standardized.

The purpose of this paper is to investigate adaptation strategy in South Korea, Japan and

People’s Republic of China (PRC) for make-up products and its promotion considering

the influence of culture on the consumer behaviour. This is studied referring to the

European market. L’Oréal Paris is used as an example to illustrate the study.

Methodology: This study is a case study about L’Oréal Paris. To conduct it, we chose

to use qualitative interviews and document analysis. Different kinds of interviews have

been done in order to know more about the company adaptation strategy, the culture and

the consumer behaviour in Asia. Written sources as external documents from L’Oréal

Paris, websites, press articles, scientific articles and literature have been used to

complete the primary data.

Theoretical framework: Culture is a system of meanings shared by members of a

group. It is an important part of marketing because it influences the consumers’ wants

and needs and because it impacts on the interpretations of products’ communication.

This demonstrates that the culture impacts consumer behaviour. The study of the

consumer behaviour conducts companies to adapt their products features, their

packaging, their symbolic attributes, their service attributes and their promotion.

Empirical data: The empirical data comes from various sources. We interviewed three

managers from L’Oréal Paris and as well girls from the following nationalities: three

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Japanese girls, one Chinese girl and two Korean girls. We also interviewed a specialist

of cosmetics. All these interviews were conducted in order to answer our objectives.

The interviews with the Asian girls and with the specialist of cosmetics were conducted

in order to collect data on the culture and on the consumer behaviour. The interviews

with the managers of L’Oréal Paris were conducted in order to collect data on their

adaptation and standardization strategies on the studied markets.

Analysis: Cultural aspects impact directly or indirectly on the consumer behaviour.

The culture diversity creates the consumer behaviour diversity as it can be noticed in

South Korea, Japan and PRC where the culture and the behaviours are very different

than in Europe.

L’Oréal Paris is trying to know more about these consumer behaviour differences in

order to answer the consumers’ demands and to adapt its products and promotion

strategy.

Conclusion: L’Oréal Paris is adapting some elements of its product range and its

promotion. The three countries studied are very different culturally speaking. However,

the adaptations on products and promotion made by L’Oréal Paris do not take fully into

account these cultural and consumer behaviour differences. Moreover, many promotion

and products aspects are standardized. Thus, the L’Oréal Paris adaptation strategy in the

Asian zone is a mix between standardization and adaptation. In its adaptation strategy,

the firm considers some elements of the consumer behaviour therefore of the culture. To

conclude, the cultural differences may influence the make-up products and promotion

adaptation strategy.

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TABLE OF CONTENTS

1. INTRODUCTION 7

1.1. Background 7

1.2. Problem analysis 10

1.3. Research question and objectives 10

1.4. Purposes 11

1.5. Delimitations 11

2. METHODOLOGY 12

2.1. Study design 13

2.1.1. Approach used 13

2.1.2. Validity 14

2.1.3. Reliability 14

2.2. Secondary data 15

2.2.1. Criteria 15

2.2.2. Different sources used 15

2.3. Primary data: qualitative interview 15

2.4. Writing up 18

2.5. Ethical considerations 19

2.6. Criticism towards our study 19

3. THEORETICAL FRAMEWORK 19

3.1. Culture 20

3.1.1. What is culture? 20

3.1.2. Cultural variables 21

3.2. Culture and its relation with consumer behaviour 23

3.2.1. What is the consumer behaviour? 23

3.2.2. How culture influences consumer behaviour? 23

3.2.3. Country-, company- and brand-related product image 26

3.3. Adaptation strategies used by companies for the pro duct and the promotion 27

3.3.1. Product strategy 28

3.3.2. Promotion strategy 30

4. EMPIRICAL FINDINGS 32

4.1. Presentation of the studied markets 32

4.2. The culture variables 33

4.2.1. Space 33

4.2.2. Language 34

4.2.3. High and Low context 34

4.3. The influence of culture on some aspects of consume r behaviour 34

4.3.1. Perception 34

4.3.2. Motivation 36

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4.3.3. Learning and memory 36

4.3.4. Age 36

4.3.5. Self-concept 37

4.3.6. Group Influence 37

4.3.7. Gender roles 38

4.3.8. Attitudes toward change 38

4.3.9. Purchase 38

4.3.10. Product image 39

4.4. Adaptation strategies used by L’Oréal Paris for the product and the promotion 40

4.4.1. L’Oréal knowledge about its market 41

4.4.2. Product strategy 42

4.4.3. Promotion strategy 44

5. ANALYSIS 46

5.1. Cultural influences on secondary consumer behaviour aspects 47

5.1.1. The gender role aspect 47

5.1.2. Attitude toward change 47

5.1.3. Self concept 48

5.1.4. Age 48

5.1.5. Learning and memory 48

5.1.6. Group influence 48

5.2. Global mechanism showing the influence of culture o n the firm adaptation strategy through the primary consumer behaviour asp ects 49

5.2.1. Perception 49

5.2.2. Motivation 53

5.2.3. Purchase 56

6. CONCLUSION 61

7. FINAL DISCUSSION 64

7.1. Recommendation 64

7.2. Further research directions 64

7.3. Further discussion 64

7.3.1. A global consumer: divergence or convergence of consumer behaviour? 64

7.3.2. Make-up: a paradoxical trend? 65

7.3.3. A new beauty model? 66

APPENDICES I

APPENDIX 1: HOFSTEDE’S DIMENSIONS II

APPENDIX 2: TROMPENAARS’ DIMENSIONS IV

APPENDIX 3: COUNTRY-, COMPANY- AND BRAND-RELATED P RODUCT IMAGE VI

APPENDIX 4: PRINCIPAL COORDINATED ANALYSIS FOR COL OURS ASSOCIATION IN PRC VII

APPENDIX 5: DIFFERENCES IN THE PACKAGING VIII

APPENDIX 6: DIFFERENCES IN THE L’ORÉAL PARIS WEBSI TES IX

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1. INTRODUCTION

1.1. Background Global versus local

Thanks to the development of information technology and the improvement of the

means of transport it is easier to share information and travel around the world. These

improvements enable firms to become more global and act in more than one continent

like Coca-cola does. Thus, global firms sell and manufacture products and services in

many different countries.

But are the customers global too? Is there a global way of seeing customers? How

should organizations approach customers from different countries? Global firms such as

Coca-Cola or Mc Donald adapt their products. For example, Coca-Cola has a different

sugar proportion in USA and in Europe. Mc Donald proposes a mozzarella salad in Italy

and apple pies in UK. The product range is adapted according to the demand in different

countries.1

Standardization versus adaptation

Two divergent international marketing strategies have been highly debated: the

adaptation and the standardization of the product offering. Standardization means to sell

the same product on all the markets.2

Product adaptation is concerned with the degree to which the physical characteristics or

attributes of a product and its packaging differ across the different markets3. This

definition can be completed by stating that product adaptation strategy can be seen as an

organisation’s logical and planned activities to meet local customers’ preferences and

values4.

International business implies knowledge and an understanding of the behaviour, the

culture, the customs and the needs of the customers. For example firms should not

address people from PRC (People’s Republic of China) which is an emergent market,

(revolution of the place of women in the society, purity as an ideal5) and from France

(mature market known as the country of fashion, hedonism, beauty and well-being as an

1 Gestland R. R., Seyk G. F., 2002, p 41 2 Calantone R. J. et al. May 2004, pp 185-198 3 Ibid 4 Calantone R. J. et al. Feb2006, pp 176-185 5 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26

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ideal6) in the same way. The fact that Asian market includes different countries such as

Japan, PRC and South Korea with various ways of consuming and different levels of

development has to be taken into account as well.

Calantone et al conducted one of the few empirical investigation reported in adaptation

and standardization field. Usually, most scholars focus on adapting advertisement and

communication.7 Our study focuses on product and promotion. Furthermore it concerns

the details of the influence of only one factor among others on the adaptation strategy.

Convergence versus divergence of consumer behaviour

Another aspect of globalization is the convergence of income, media and technology.

Some authors expect this convergence to create homogeneous consumer needs, tastes

and lifestyles.8 However, some authors are arguing that convergence has not occurred

yet and that the differences are actually increasing9. “From a managerial perspective, the

choice between adaptation and standardization across markets has to consider the

differences and the similarities in consumer behaviour for a particular setting”10.

Culture bound versus culture independent

Culture is an important variable to understand the differences in consumer behaviour11.

When the behaviour of the consumer is “culture bound”, it is leading to local adaptation

strategies, whereas when the behaviour is “culture independent”, it is leading to

globalized strategies12. “Culture bound arises in a number of situations, some being

related to the consumption situation, other being related to product attributes, that is,

because of peculiar qualities in the encounter between things and people13”. Products

will be more culture bound if they closely relate to the elements of the physical

environment which influence the local material culture, and which are linked to the

climate (density of population, housing, flora and fauna…etc).14 Culture bounds are

strong for a product when there is investment of consumers’ cultural and national

background and identity in consumption. Consuming then becomes more than just a

utilitarian function, as it is resulting for a penchant for the products made in the

6 Manager Asian zone, based in Hong-Kong, 06/04/25 7 Calantone R. J. et al. May 2004, pp 185-198 8 De Mooij, M., Hofstede, G., Spring 2002, pp 61-69 9 Dawar N., P. Parker, 1994, pp 81-95 10 Ibid 11 De Mooij, M., Hofstede, G., Spring 2002, pp 61-69 12 Dawar N., P. Parker, 1994, pp 81-95 13 Usunier, J-C, 1992/2000, p 149 14 Ibid

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domestic market. Products that entail a relationship to others are likely to be culture

bound, precisely because this relationship is culturally coded. 15

The make-up market in Asia

We decided to study the cosmetics as they were found to be one of the most highly

standardized industries in business to customers market16. For this reason we believe

that empirical research is needed in order to provide information for the firms that are

willing to break into the Asian market.

We used the European market as reference since it is L’Oréal Paris home market. We

thought it would be interesting to refer to the European market since Asian and

European markets have many differences in their characteristics: cultures, history, and

level of development etc. These differences can show us a lot of opportunities for the

firm to adapt its make-up products.

The make-up Asian market is a very dynamic market which is moving quickly. It is one

of the most expensive in the world what make the firms more interested in entering this

market.17 But as specified before, Asian market is very specific and to succeed there,

firms must know how to operate in this unique, complex multicultural environment18.

The three biggest markets within the Asian zone for L’Oréal Paris are Japan, South

Korea and PRC19.

L’Oréal background

The group L’Oréal was created at the beginning of the 20th century by the French

chemist Eugène Schueller. It is today a large group represented in 130 countries.20 It

owns a wide brand portfolio in different areas of cosmetics21. The brand L’Oréal Paris

proposes skincare, make-up, haircare, hair colorant, perfumes and some other products

less heavy in the portfolio22. The group is a world leader in many branches of its

activity. Its Asian market is currently a growing market with about 10 percent of

growth per year.23

15 Usunier, J-C, 1992/2000, p 150 16 Whitelock et al. J. M. , 1987, pp 32-44 17 Manager Asian zone, based in Hong-Kong, 06/04/25 18 Gestland R. R., Seyk G. F., 2002, p 12 19 Manager Asian zone, based in Hong-Kong, 06/04/25 20 L’ORÉAL, http://www.loreal.com/ , accessed 2006/04/10 21 L’ORÉAL, Annual Report 2005, p 50 22 Ibid p 15 23 Ibid, p 6

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L’Oréal Paris is the world’s number one cosmetics brand with sales of €4 billions. The

targets are consumers that are looking for effective products with a technological added

value. The brand is positioned at the upper end of the mass-market cosmetics sector.24

L’Oréal Paris starts establishing its brand in Asia with the Japanese market in 199625.

Then, L’Oréal Paris got in Chinese market in 199726. The group L’Oréal arrived a long

time ago in South Korea (1980) but launched the brand L’Oréal Paris only in 199927.

1.2. Problem analysis When making the decision to break into a new market, an organisation has also to

decide the strategy that is going to be implemented in this chosen market. This strategy

can be similar than the one in the home market if the segment is presenting similar

characteristics, or it can also differ and thus requires to be changed in order to adapt to

the market. Do companies sell the same products in Europe and in Asia?

The decision of breaking into a new market also depends on the consumer behaviour on

this market. The product and its promotion need to be adapted considering the consumer

behaviour. As an example, the symbolic of colours can differ between countries. Some

colours can be less attractive according to the culture of the customer28. Do marketers

must take this element into account? This is an example of how the culture might

influence the adaptation of the product. How the culture is impacting on the consumer

behaviour? Is the consumer behaviour influencing firms’ adaptation strategy?

1.3. Research question and objectives Research question

Do the cultural differences influence L’Oréal Paris adaptation strategies for the make-up

products and their promotion?

In order to answer this research question, these objectives have to be completed.

Objectives

- Understand the influence of culture on the consumer behaviour in PRC, Japan and

South Korea.

24 L’ORÉAL, Annual Report 2005, p 58 25 Japan External Trade Organization, http://www.jetro.go.jp/fr/invest/whyjapan/success_stories/pdf/2_loreal_fr.pdf, , last modified 06/04/13, accessed 06/05/03, 26 Le Monde, http://www.lemonde.fr/web/article/0,1-0@2-3234,36-764315@51-751671,0.html, last modified 06/04/25, accessed 06/05/03, 27 L’ORÉAL, http://www.loreal.com/ , accessed 2006/04/10 28 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26

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- Explain in what ways the consumer behaviour is influencing product and promotion

adaptation strategies for make-up in PRC, Japan, and South Korea.

- Investigate L’Oréal Paris product and promotion adaptation strategy taking into

account the influence of consumer behaviour.

1.4. Purposes The purpose of this paper is to investigate the adaptation strategy on the Asian Zone for

make-up products and its promotion considering the influence of culture on the

consumer behaviour. This is studied referring to the European market. In other words,

we want to investigate how the culture is impacting on the consumer behaviour and how

the consumer behaviour is impacting on the degree of adaptation.

The case of a specific firm, L’Oréal Paris, will be investigated in order to understand if

it adapts its make-up products and its promotion in specific markets: Japan, People’s

Republic of China and South Korea. Adaptation details on products physical attributes,

packaging, service attributes, symbolic attributes and promotion will be examined.

This study is addressed to the firms. It will enable them to know more about their

customers.

1.5. Delimitations - We will focus on the brand L’Oréal Paris and its make-up products.

- The financial aspects will not be broached.

- The environmental aspects of the adaptation problem will not be broached.

- Compulsory adaptations like the adaptation to industrial standards, safety standards

or hygiene regulations will not be broached either.

- The impact of the physical characteristics of individuals on the level of adaptation

strategies used by organisations will not be broached

- We are not going to study the approach of media used by L’Oréal Paris and the

allocation of promotional budget between advertising, sales promotion and personal

selling.

- Concerning the geographic delimitations, three countries in the Asian Zone are

going to be studied: PRC, South Korea and Japan. European countries will be used

only as reference markets.

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Figure 1: Methodology framework for the empirical part (with data from Gestland29)

2. METHODOLOGY

The first step of this study was to create a group. It is an important point since it is the

moment when you choose to work for weeks with the same persons. Therefore, this

choice must be done carefully. Beyond the existing nice relationships, it is important to

be sure that it is possible to work together. Because of our previous works together, our

common background but our different skills and our ability to solve potential internal

problems we decided to work together.

Emilie is specialized in marketing and logistic. Her last module was Strategic marketing

and design, a subject focusing on strategy and design management. She helps the group

to progress thanks to her diplomacy. Lauranne is specialized in marketing and Human

Resources. Her last module was about European business which focuses more on the

impact of culture on the marketing strategy. She brings her sense of organization to the

group. Tytti is specialized in marketing and logistic. Her last module was Strategic

marketing and design, a subject focusing on strategy and design management. She is

finical and perfectionist, she allows the group to be rigorous in all the situations.

The last but not least point was that we trust each other. This confidence enables us to

work efficiently sharing sometimes tasks.

However, it is difficult when you are three to keep in touch and to inform each others in

real time about the work completed. Thus, in order to work in an effective way, as

29 Gestland R. R., Seyk G. F., 2002, pp 39-41

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noticed by Silverman30, we created a research diary in order to know the research and

the sources exploited by the other members of the team. We also used it as a schedule

with all our deadlines and as a mean of communication between us. The progression of

our work was also punctuated of common meetings, once or twice a week, to have an

overview of the progression.

Once this organization set on foot, we began a wide search on the global topic chosen.

This search was constituted of secondary data from different origins: websites, scientific

articles, theoretical books, press, and books about the market studied etc. and of

research of contacts in L’Oréal Paris in order to prepare the collection of primary data.

All this information allowed us to see the available data and to choose our topic and

then to sort the information.

2.1. Study design Since we wrote about a specific subject for a specific company, using all the

appropriated methods31, we conducted a case study. Even if there are few purposes and

research questions, the principal aim is to deepen the case the best as possible32.

2.1.1. Approach used As our subject includes a lot of preliminary researches in order to know more about the

market, the differences (in the product and the promotion) and the customers, we chose

to work with in an abductive way.

Abduction, or abductive reasoning, is the process of reasoning to the best

explanations. In other words, it is the reasoning process that starts from a set

of facts and derives their most likely explanations. In other words, abduction

is the process of explaining what is known. 33

The following scheme proposed by Gyöngyi Kovács and Karen M. Spens illustrates the

process. The abductive approach begins with a real-life observation. Then, there is a

“theory matching”. It means that empirical data is going to fit to theory, and then theory

is going to fit to empirical data and so on until a balance between both is found. The

purpose of this approach is, in theory, to understand a new phenomenon and to suggest

new theory through hypotheses or propositions34.

30 Silverman, D., 2000/2005, p 40 31 Punch, 1998, p 150, quoted by Silverman, D., 2000/2005, p 126 32 Ibid 33 WIKIPEDIA, http://en.wikipedia.org/wiki/Abductive_reasoning, last modified 06/03/15 , accessed 06/04/06, 34 Kovács, G., Spens, K. M., 2005, pp. 132-144

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Since we are only students writing a bachelor thesis, we cannot pretend to be able to

suggest new theory so we used only the “theory matching” process of the abductive

approach in order to answer our objectives.

Figure 2: The abductive research process35

This approach enabled us to use the theory as a guideline, keeping the same thread and

having in mind some delimitation, without be restricted to it if some new important

elements on the field come up.

2.1.2. Validity The validity can be defined as “the extent to which the researchers are able to use their

methods to study what they had sought to study rather than studying something else”36.

To assure and construct the validity, it is important to use different sources among

documentation, archival records, interview, internal or external observation and to

establish a “chain of evidence” so to have correct operational measure.37

This validity can be divided into two different concepts: the internal and the external

validity. The internal validity can be done by establishing a causal relationship in the

building of the explanation and in using logical models whereas external validity can be

done by demonstrating the way to which the findings of the study can be generalized.38

For this paper no generalisation will be done since our subject just cover a specific part

of the cosmetics market. One firm, L’Oréal Paris cannot be considered as representative

of the whole cosmetic industry.

2.1.3. Reliability The reliability can be defined as “the degree of consistency with which instances are

assigned to the same category by different observers or by the same observer on

35 Kovács, G., Spens, K. M., 2005, pp. 132-144 36 Gummesson E., 2000, p 91 37 Yin R. K., 2003, p 34 38 Ibid

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different occasions”39. It is obtained in demonstrating that the different steps of the

study can be repeated with the same results. It explains why we wrote all the

methodology steps we followed in order for another person to be able to do the same

study than us. This is important in a case study, where the qualitative interviews may be

subject to interpretation.40 For each type of interview (managers, students and

specialist), we used a specific questionnaire basis and a specific way to conduct the

interviews.

The validity and reliability of our data are discussed in the following parts.

2.2. Secondary data

2.2.1. Criteria Regarding the sources concerning the market, we tried to use sources that were the most

recent possible since the market changes very quickly. We also wanted to have some

sources diverse enough to make sure to avoid the maximum of biases due to the lack of

objectivity of certain documents and to insure the validity of the information.

2.2.2. Different sources used We used books, scientific articles and web sites as documentation. Documentation is an

important and effective tool since it enables a broad coverage of the subject. Moreover,

it is a stable and exact source as it contains names, references and details that can then

be used for further researches and can be reviewed repeatedly. This variety enabled us

to have different levels of information. Books allow having more basic information

studied in a detailed way while scientific articles bring some new ideas. It was the same

for the web sites which were up-dated. Moreover, thanks to this large overview, we

could have a critical view of our own subject and evaluate our way of thinking.

2.3. Primary data: qualitative interview Qualitative interview is an approach that is in opposition with quantitative interview as

it is administrated to fewer persons and focuses on specific subjects instead of

frequencies, percentages and figures. Another difference is that qualitative interviews

create a specific relationship with people since the interviewer’s role is to make people

39 Silverman, D., 2000/2005, p 380 40 Yin R. K., 2003, pp 34-39

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speak about the topic. Thus, trust is an important element in the achievement of an

effective and more reliable data base. 41

We chose this method because it was the most adapted to our subject. We looked for

information about culture, consumer behaviour and companies’ strategies. That

information could not be found through quantitative interviews.

Sample, selection of respondents

In a qualitative study, the respondents must have a good knowledge on the subject in

order to higher the information value. It is also important that the interviewees have the

ability to express themselves well. Thanks to that, the interviewer can create interaction

more easily and go deeper in the interview. 42

The subject asks for information about culture, consumer behaviour and strategy

employed by the company. This is why we decided to interview a specialist of

cosmetics in worldwide markets: Ivan Coste-Manière, Dealer of advertising company

Parfums Cosmétiques Actualités, leader in press Business to Business. He contributed

to the study essentially with the culture and consumer behaviour parts.

We also interviewed three managers from L’Oréal Paris working with different markets.

The Area Manager of Sweden and the Area Manager of Caribbean Islands, South and

Central America brought us knowledge about the L’Oréal Paris adaptation strategy and

what about the differences that can exist between and inside the markets. The Area

Manager of Asia, more concerned by the studied market, brought the most important

part of the field concerning the L’Oréal Paris adaptation strategy on the Asian market.

We also interviewed girls from Asian nationalities: three Japanese’s, one Chinese’s and

two Korean’s. The aim of these qualitative interviews was to know more about culture

and consumer behaviour in their respective country especially when it comes to make-

up.

To make contact with them we used different ways. Ivan Coste-Manière is a teacher in

IPAG, which is a business school where we were studying previously. We contacted

him by email. We contacted the managers from L’Oréal Paris thanks to our home

school network of former students. The Asian girls are students in Växjö University.

41 Rubin, 1995, p 17 42 Holme et al., 1997, pp 101-105

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Interview construction

Interview construction is a very specific step for qualitative interview. The aim is to

create a questionnaire that is flexible, interactive and continuous. Thus the interviewer

will be able to change and adapt the questions with the respondents’ comments and

answers. But the thread must be kept in mind in order to collect the right data.43 This

system is called a semi-structured interview. The interviewer must list the topics that

need to be investigated and then create a list of questions adapted. Those questions will

be a guideline to follow.44

The interviews were prepared before but they were improved in proportion as our work

was progressing. We chose not to mention the word strategy in our interviews with

L’Oréal Paris managers as the strategy is very protected by the firm.

The interview

The interviewer must listen carefully to the answers in order to adapt the other questions

and to follow the logical flow. In that way, the respondent will speak more than if

he/she is always interrupted. The interviewer must also be curious and open-minded in

order to respect what the respondent is going to say and not to influence the answers. 45

Body language must be observed and transcribed. It completes the meaning of the

verbal communication.46 The use of the same language for all the interviewees helps to

avoid an eventual language-based response bias already observed in multicultural

researches47.

During the interviews, we used the semi-structured questionnaire as guideline.

Sometimes, when the respondent was talking about interesting subjects, we let him/her

tell what he had to say. The interviews were administrated in English to the Asian girls.

The use of English was not a problem as they are fluent. The interviews with L’Oréal

Paris managers and the specialist of international cosmetic markets have been done in

French, since they are French like us. During the interviews, one of us played the role of

the interviewer. The others took notes or/and observed.

43 Rubin, 1995, pp 42-43 44 Ibid, pp 146-150 45 Ibid, p 17 46 Ibid, pp 125-136 47 Dawar N., P. Parker, 1994, pp 81-95

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Analysing data

It is better if the interview is recorded. But this has to be allowed by the respondent who

may have some privacy to respect.48 After the interview, thanks to the recorded

conversation or thanks to the notes and memory, the dialogue has to be written down.

Then, responses have to be grouped into categories that bring together the same ideas,

concept or themes. Thanks to that a more complete analysis and comparison is then

possible.49

The interviews with Ivan Coste-Manière and the girls were face-to-face encounters. We

recorded them, except the last one because we met a technical problem. The interviews

with managers have been done by phone. We were not able to record them but we were

two to take notes during each interview. After each interview, we discussed it together

immediately in order to detect the relevant data collected.

2.4. Writing up While we were collecting data, we wrote the theoretical part. This parallel progression

allowed the improvements of both parts: because we had theory, we thought about new

relevant questions and because we heard a new interesting point in interview, we looked

for adequate theory.

Once the theoretical part was done and all the data collected, we started the empirical

part. We chose to mix interviews, scientific articles, press and books to have different

points of view and then confirm the validity of data. Indeed, mixing sources of

information could help us to avoid certain biases. The annual report is written by the

firm and addressed to the stakeholders. Therefore, it is like an advertisement since it

shows the main strengths of the firm. The interviews from managers were also internal

points of view. But by using other sources of information like the interview of Ivan

Coste-Manière or articles from specialized press, we found information that confirmed

or infirmed the information from the company. This variety of sources gave us a more

objective point of view.

Then we began the analysis. We chose to draw a schema to facilitate the comprehension

of the analysis; this schema is a summary of the analysis. The conclusion is an answer

to our objectives. The final discussion proposes some recommendations for L’Oréal

48 Rubin, 1995, pp 125-136 49 Ibid, pp 238-239

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Paris and companies operating on the same markets. Then, it gives the interest of the

study for further research directions, and it discusses some points linked to the subject.

2.5. Ethical considerations During all this study, and especially during the writing stage, we engaged to respect the

authors, always referencing them. We engaged to respect the interviewed people,

transcribing and translating their words in the best way possible. We also engaged to

respect the anonymity of people who asked for it.

2.6. Criticism towards our study Since we are just students and we lack resources, some critiques towards our work can

be done. Firstly, we only interviewed students from the campus, a limited population

that is not really representative of the entire population of the Asian market studied.

Secondly, we made the interviews with the managers on the phone, and not face to face.

This implies that some biases might exist. For example, the phone does not allow the

analysis of the non verbal communication: Is the person completely attentive? Do

some questions cause some stress’ reactions? Thirdly, the managers interviewed have

all the adequate knowledge to answer our questions, thanks to their training, their

former functions in the society and/or the similarities with studied markets. However,

they are in charge of duty free, so it is possible that sometimes answers have been

biased by their specific function.

To confirm primary data, we looked for secondary data. The data provided by L’Oréal

Paris itself cannot always be considered as objective, as seen previously in the

methodology. Even if we tried to find updated data, some documents used can be old.

For example, recent information about markets is sometimes difficult to find or too

expensive to obtain. People may also be aware of the fact that certain information are

not available and that a bias can always exist, even a minimal one.

3. THEORETICAL FRAMEWORK

In order to fit to the purposes, the theoretical framework is divided into three parts: the

culture and its variables, the culture and its relation with consumer behaviour and the

standardization and adaptation strategies used by the firms.

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Culture allows understanding some aspects of consumer behaviour50. Therefore, it is

necessary, after having defined culture, to determine which variables of the culture are

linked to the consumer behaviour.

The second part of the theoretical framework deals with defining consumer behaviour

and with presenting the variables of consumer behaviour influenced by culture.

Consumer behaviour must be considered by companies in order to make a decision

about their standardization or adaptation strategies.

Finally, the third part of the theoretical framework presents the standardization and the

adaptation strategies. This part also focuses on the aspects of the product such as: the

physical attributes, the packaging, the services attributes and the symbolic attributes.

Figure 3: Theoretical framework

3.1. Culture

3.1.1. What is culture? Culture can be considered as a set of

knowledge, beliefs and values, arts, law, manners and morals, and all other

kinds of skills and habits acquired by a human being as a member of a

particular society. 51

In other words, culture is a system of meanings shared by members of a group. Those

meanings are learned, not innate and they are relative, i.e. there is no cultural absolute.52

Culture is an important part of marketing since it influences the consumers’ wants and

needs and since it impacts on the interpretations of communication around products.

This is important to know in an international context, where cultures differ between

different markets. Culture impacts on all the elements of the marketing mix. 53

50 Usunier, J-C, 1992/2000, p 148 51 Ibid, p 6 52 Hoecklin, L., 1994/1995, p 25 53 De Búrca et al. 2004, p 59

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3.1.2. Cultural variables Culture can be described with variables. The following presented variables are those

relevant for our study.

3.1.2.1. Space According to De Búrca et al.54, space can be physical or abstract. The physical space

can be a location. The abstract space refers to a grouping of people based on common

characteristics such as profession or religion55. The notion of space implies the notion

of in and out. This includes if people are insider or outsider, the rights and the

obligations for group members, the extent to which outsiders can become insiders, and

vice-versa, and how it can be achieved. 56

3.1.2.2. Language Language is a very complex process that differs in a lot of ways57. The language can be

spoken or written. In both cases, it can cause misunderstandings.58

The language can differ in the order of the discourse: justification before or after the

main point. We will see that the dimension of Hall, high- versus low-context culture,

impacts on the degree of precision of the language, the use of body language, and the

tone. Those differences can change the meaning.59 Other parameters like the pitch of

voice or the vocabulary (differences between generations, colloquial/formal/informal)

also influence the understanding60.

In the written language, there are differences in the script. A lot of cultures use letters

but many others use symbols that change between countries.61

3.1.2.3. Hofstede’s dimensions Power distance

Power distance refers to the extent to which a society and its members expect and

accept the way how the power in institutions and organizations is distributed.62

Cf. Appendix 1 pp II-III

54 De Búrca et al. 2004, p 73 55 Ibid 56 Usunier, J-C, 1992/2000, p 33 57 De Búrca et al. 2004, p 73 58 Deresky, H., 1997, p 101 59 De Búrca et al. 2004, pp 73-75 60 Deresky, H., 1997, p 102 61 De Búrca et al. 2004, pp 73-75 62 Usunier, J-C, 1992/2000, p 65

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Uncertainty avoidance

The uncertainty avoidance dimension represents how the members of a culture feel

threatened by uncertain and ambiguous situations; it is the ability to take risks.63

Cf. Appendix 1 pp II-III

Individualism versus Collectivism

In individualism societies, individuals take care about themselves and their immediate

family whereas in collectivist societies there is a concern for the priorities and rules of

the group to which people belong. 64

Cf. Appendix 1 pp II-III

Masculine versus Feminine

Masculine societies have more masculine values like success or money. Sex roles are

separated whereas in feminine societies, values are more feminine, the quality of life is

more important. Sex roles can be overlapped. 65

Cf. Appendix 1 pp II-III

3.1.2.4. Trompenaars’ dimensions Universalism versus particularism

For the Universalist, what is true and good can be applied everywhere. The particularist

favours relationships. 66

Cf. Appendix 2 pp IV-V

Neutral versus affective

In neutral cultures, people believe that emotions should be hidden to give the

appearance of keeping control. In affective cultures, expressing emotions openly is

natural.67

Cf. Appendix 2 pp IV-V

Specific versus diffuse

In specific cultures, private life and work life are separated. People are more direct.

In diffuse cultures, private and public life are very close. Relationships must be

established before business.68

Cf. Appendix 2 pp IV-V

63 Hoecklin, L., 1994/1995, p 32 64 De Búrca et al. 2004, p 82 65 Hoecklin, L., 1994/1995, p 37 66 Ibid, p 41 67 Ibid, p 43 68 De Búrca et al. 2004, p 85

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3.1.2.5. High and Low context According to Hall, the influence of context impacts on the interpretation of verbal and

non-verbal communication. In high-context cultures, things are implicit; they can be

understood with the body language, the context.69

In low-context cultures, messages are more explicit. All, or almost all, is said.

Those differences complicate the understanding between people from different

cultures.70

3.2. Culture and its relation with consumer behavio ur

3.2.1. What is the consumer behaviour? Solomon et al. describe the consumer behaviour as

The processes involved when individuals or groups select, purchase, use or

dispose of products, services, ideas or experiences to satisfy needs or

desires.71

It is important for a company to understand well the behaviour of a consumer in order to

succeed in business. If marketers study the consumers, they will know their needs and

wants, so they will know which products consumers will buy and how the promotion

will be the most effective. 72

There is not one unique consumer but a lot of different consumers that react differently

in function of their age, gender, social class, income, geographical position, culture,

race, ethnicity etc. These different consumers will react differently to marketing.73

3.2.2. How culture influences consumer behaviour? As seen previously, consumers are different. Culture is one of the elements that can

influence the behaviour of a consumer. 74

3.2.2.1. Hierarchy of needs The pyramid of Maslow75 is a good example to show the influence of culture on the

needs of consumers.

69 Hall, E; 1976, . quoted in De Búrca et al. 2004, p 70 70 Ibid 71 Solomon, M. et al., 1999/2002, p 583 72 Ibid, p 5 73 Ibid, p 8 74Usunier, J-C, 1992/2000, p 103 75 Maslow, 1954, quoted in Usunier, J-C, 1992/2000, p 103

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Figure 4: Maslow’s hierarchy of needs – West and Asia76

The needs of an individual can be classified as a hierarchy from physiological needs

(hunger, thirst) at the bottom, to safety needs (security, protection), to social needs

(sense of belonging, love), to esteem needs (self-esteem, recognition, status), to self-

actualization needs (self-development, actualization) at the top. The needs at the bottom

of the hierarchy such as thirst tend to be satisfied first whereas needs at the top of the

hierarchy such as realization tend to be satisfied last. Culture can impact on the needs at

every level of the hierarchy. However, the higher in the hierarchy, the greater the impact

of the culture is. The research is showing that both specific needs and their ranking can

vary from culture to culture.77

3.2.2.2. The influence of culture on some aspects o f consumer

behaviour

According to Jean-Claude Usunier78, cultural differences can impact on different

aspects of consumer behaviour. The following points are interesting for our subject.

Perception:

The culture impacts on the perception of shapes, colours and space because of the

symbolic79.

Concerning colours, managers must acknowledge that the meanings associated with

some colours may be unique to one’s culture. The meaning of colours and combination

of colours is different across cultures. Individuals coming from different cultures have

different preferences for colours. Even thought reactions to colours are considered to be

76 De Búrca et al., 2004, p 69 77 Ibid 78 Usunier, J-C, 1992/2000, p 109 79 Ibid

Prestige

Belonging

Safety

Physiological

Self-actualisation

Admiratio n

Affiliation

Safety

Physiological

Status

Asia West

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individualized, universal colour preferences are thought to exist. Colours combinations

are considered to be culturally bounds with certain traditions and ideologies.80

Motivation

The cultural differences influence the motivation to own, to buy, to spend, to consume,

to show, to share and to give. 81

Learning and memory

Culture influences the level of literacy and the memory since it is shaped by the

education system. Familiarity with product classes is created by education.82

Age

Culture impacts on the valuation of young and old within the society and on the process

of buying decisions within age groups. In addition, it impacts on how the purchasing

power is spread between the generations. 83

An age cohort is:

A group of consumers of the same approximate age who have

undergone similar experiences.

Need and preferences change between generations, the age has an influence on the

identity of the consumer.84

Self-concept

The attitude a person holds to him- or her-self85.

According to Jean-Claude Usunier, “the concept of the self is a kind of modal view of

what people are in the society and therefore what they are allowed to do”. The ideal

patterns are shown by book, TV etc. 86

Group Influence

Consumer behaviour can be dictated by the group belonging.87

Some cultural aspects that can affect the international communication are the level of

respect for social hierarchies. This will have an impact on the content of the message

and maybe on the background used in the promotion or in the advertisement.88

80 Madden T. J., K. Hewett, M. S., Roth, 2000, pp 90-107 81 Usunier, J-C, 1992/2000, p 109 82 Ibid 83 Ibid 84 Solomon, M. et al., 1999/2002, p 405 85 Ibid, p 589 86 Usunier, J-C, 1992/2000, p 57 87 Ibid, p 109

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Gender roles

Gender roles can impact on the decision-making when shopping and on who in the

couple is shopping.89

In communication, the role of the women in a culture has an impact on who the message

is addressing and on the content of the message.90

Attitudes toward change

This aspect is about the resistance to change in the behaviour of consumers and the

resistance to change in domains where change could knock against local values and

behaviour.91

Purchase

It is the moment when the consumer buys the product(s). He/she can be influenced by a

lot of elements like loyalty programs, point of sale promotion, sales person and all other

elements of the purchasing environment.92

3.2.3. Country-, company- and brand-related product image

Few elements contribute to the consumer perception of product nationality:

Cf. Appendix 3 p VI

• The image of imported products versus national products or the image of

national products versus international products

• National images of generic products

• The national image of the manufacturing company

• The image diffused by the brand name

• The image of the “made-in” label in the sense of the manufacturing origin

legally appended to the product; origin labelling is mandatory in international

trade. 93

The product image is influenced by the different elements of the culture.

88 De Búrca et al., 2004, p 318 89 Usunier, J-C, 1992/2000, p 109 90 De Búrca et al., 2004, p 318 91 Usunier, J-C, 1992/2000, p 109 92 Ibid 93 Ibid, p 317

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The “country of origin” attribute has a symbolic impact on consumers. It is often

associated with qualitative adjectives (luxury for France, beauty for Italy etc.). These

images are stereotypes. 94

Consumers often use the image of the country of origin to evaluate the product whereas

other elements such as quality or price seem more important. The country of origin also

impacts on the perceived risk. National products or products from a specific country

give the impression of a lower risk.95

With the globalization of markets, the country of origin and the country of production

are more and more often different. Some studies have been done to know which of the

countries, country of the brand and country of manufacturing, have the more impact on

the perception of product quality. The answer depends on the product and on the culture

of the consumer. Both are important.96

The credibility of international brands is often based on a national image97.

3.3. Adaptation strategies used by companies for th e product and the promotion

As seen in the previous part, customers from different countries have different

expectations. Companies dealing with international markets and exporting products

must take into consideration those differences and choose between standardization and

adaptation for their products and the promotion used to sell the product.98

Effectiveness in marketing means to adapt to cultural values. Culture has been shown to

influence the use of cosmetics. Company brands are more customary in Asia whereas

the product brand is a more western, individualist phenomenon. Differentiation and

positioning strategies are western phenomena and product brands are developed for

positioning purposes, both against the competition and against other brands of the

company’s brand portfolio. The standardization or the adaptation concerns the product

in itself but also its packaging and the auxiliary services.99

94 Usunier, J-C, 1992/2000, p 320 95 Ibid, p 321 96 Han and Terpstra, 1988, à 244, Eroglu and Machleit, 1989, Ahmed et al., 1994 and Ettenson, 1993 quoted by Usunier, J-C, 1992/2000, p 323 97 Shalofsky, 1987 quoted by Usunier, J-C, 1992/2000, p 339 98 Albaum G. et al., 2005, p 400 99 Ibid

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3.3.1. Product strategy

3.3.1.1. Standardization of product Standardization is a simplified strategy based on experience effects, from home market,

and cost reductions100. Standardized products can be sold in the same way in all

countries.

When a product is extremely standardized, it is called globalization of product101. A

global product is therefore a product that can be proposed internationally at the same

moment102. It has been designed in this perspective103.

The specific product-market-company is impacting on the standardization/adaptation

problem. For the product, a high degree of standardization exists for the following

elements: packaging, brand name and physical characteristics. However, there are some

variations depending on the category of product. Cosmetics were found to be one of the

most highly standardized in the business to customers market. The most important

obstacles to standardization are differences in consumer tastes, habits and incomes for

consumer durables and non durables. Finally, universality is limited by culture and

habits.104

Figure 5- A standardization/modification decision framework105

Standardization has some advantages like reduction of costs that are not going to be

studied in this study. However, it is important to keep in mind that this alternative

exists.

100 Usunier, J-C, 1992/2000, p 282 101 Albaum G. et al., 2005, p 400 102 De Búrca et al. 2004, p 272 103 Ibid, p 258 104 Whitelock, J. M., 1987, pp 32-44 105 Ibid

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3.3.1.2. Adaptation of product It is not because a product meets a success in a specific country that it will encounter the

same in another country. That is why companies sometimes have to adapt their product

to the local market.106

One study proved that product adaptation is related to the following factors: how a

product is used or operated, labelling, quality, packaging and styling. The study is

showing as well that customer is one of the driving forces for product and promotion

adaptation.107

Physical attributes

For physical attribute adaptation, compulsory reasons are insignificant compared to the

differences in consumer behaviour and in the national marketing environment

reasons108.

Few elements must be taken into consideration. One of the elements concerns the

consumption patterns. It can be the consumer tastes or the frequency of consumption.

The other one is to adapt product to local product usage.109 Indeed, aspects like level of

literacy, technical knowledge and ability to use written information must be taken into

account to avoid further difficulties.110

Packaging

Adapting the packaging is a cheap, quick and easy way to adapt a product to a market.

The material used, the language, the size etc. can be adapted.111

Adaptation does not inevitably exclude standardization. It depends on the target market.

For example, by writing in English on packaging, the firm can use the same one in

many different countries. It is also possible to use multi-language packaging. Another

way to standardize is to have same dimensions for packages.112

Service attributes

Products can be sold with a package of service attributes113. Service attributes have an

important role to play in the field of the consumer non-durables.114

106 De Búrca et al. 2004, p 258 107 Whitelock, J. M., 1987, pp 32-44 108 Usunier, J-C, 1992/2000, p 286 109 De Búrca et al. 2004, p 268 110 Usunier, J-C, 1992/2000, p 287 111 Albaum G. et al., 2005, p 407 112 Ibid, p 408 113 De Búrca et al. 2004, p 269

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Expectations regarding the service attributes are likely to differ from country to country.

Another dilemma concerning the service attributes is whether to adapt to the local

expectations knowing that it might impact on the firm’s international reputation or

whether to provide the same service attributes than in the home market which can lead

to make the firm less competitive on the international market.115

Symbolic attributes

Jean-Claude Usunier defines the symbol as:

The sign that operates a relationship which is non-causal and non-

analogous116.

He quotes also a definition from the Collins Dictionary and Thesaurus117 that defines

symbol as:

Something that represents or stands for something else; usually by convention or association, especially a material object used to represent something abstract.

Symbols help people to understand the elements of the world118.

Concerning adaptation and standardization, the symbolic attributes can be studied in

two axes. The first one concerns the relation between symbolic attitudes and national

product image. The second axe is concerned with culture. Cultural differences can

change the interpretation of symbols. This difference of interpretation is due to the

difference of perception.119 Both axes have been discussed previously.

3.3.2. Promotion strategy

3.3.2.1. Language

The understanding of language, studied previously, has to be taken into account by the

firm. As an example, in an advertisement, the characters and structure of text can have

an impact on the efficiency of the message. If the firm does not know how to adapt its

language, the communication can be misunderstood.

When using an English slogan, the firm must be aware of the different interpretations

the customers can give around the world. The translation of the slogan can also be a

problem as the equivalence of the words is not always that easy to find.120

114 Usunier, J-C, 1992/2000, p 290 115 De Búrca et al. 2004, pp 269-270 116 Usunier, J-C, 1992/2000, p 297 117 Collins Dictionary and Thesaurus, 1987, p 1018 quoted by Usunier, J-C, 1992/2000, p 297 118 Solomon, M. et al., 1999/2002, p 442 119 Usunier, J-C, 1992/2000, p 297 120 Ibid, p 463

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3.3.2.2. Context and interpretation Context, through culture, also influences the communication. For example, certain

culture will need a high context to understand the message in a better way or the

interpretation of the context will be different according to the culture: Can I trust this

person? How to interpret this body language?121

Culture affects how individuals interpret signals and symbols and also their attitudes

towards particular products. These considerations need to be taken into account when

developing the message to be communicated. Consequently, symbols, brand names,

celebrity endorsement, colours in the promotional pieces in the domestic market may be

inadapted in another market.122 In high context cultures, communication should imply

rather than stating directly while in low context cultures it is the contrary. The

application of context to international communication can be categorized as

following:123

Conversational principles

In high context cultures it should be recognized that people ask for considerable details

about the executive and the company represented. Communication must be clear. The

recipient should be able to identify. The body language must be used with caution to

facilitate the understanding of the consumer. 124

Presentation principles

Formal culture must be respected. The desire for structured presentations will have an

impact on the format and the content of the promotional message. The different way

foreign audiences react to promotional communication must be respected and appealed

to. Finally, the length of the message must be designed; it can be seen as an indication

of the importance that the company attaches to its message. 125

Written word principles

The structure of the message should vary according to the culture. In low context

cultures, communication should be organized so that the central point is directly stated.

The style of writing must be adapted to the culture. In high context culture it implies

that there should be must politeness in the message. 126

121 Usunier J. C., 1992/2000, p 417 122 De Búrca et al., 2004, p 316 123 Ibid, p 317 124 Ibid 125 Ibid 126 Ibid

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3.3.2.3. Language, context and interpretation in ad vertising Since advertising is based on image and language, it is largely influenced by culture127.

Nowadays, because of the globalization of media and the improvement of promotion

tools, advertisement can be done worldwide. Therefore, firms must develop more

precise segmentations with respect to the cultural fragmentation: ethnic aspects or

language for example. However, advertisement is borrowing element from different

cultures since advertising mirrors change social behaviours.128 Culture impacts on the

way consumers see advertisement. For example, a study made by Andrews et al. (1991)

shows that 51% of the Indian students think that advertisement have negative effects on

economic and social aspects whereas only 22% of the American student think the same

thing.129

Culture is also influencing the advertising appeals and the way the firm must implement

and spread its message in impacting on the values and the way of thinking.130

4. EMPIRICAL FINDINGS

4.1. Presentation of the studied markets

People’s Republic of China

Nowadays, in PRC, it is more common to use some make-up because people are better-

educated, better-paid and attach more importance to their appearance131. Forty years

ago, make-up was considered decadent and anti-revolutionary. Today, the PRC is the

eighth largest cosmetics consumer in the world. The beauty and cosmetics industry

ranked the fourth largest consumption zone in China in 2004. According to government

and private studies, the total current value of China's beauty and cosmetics market was

between 3,9 and 4,3 billions euros in 2005. Over the last six years, it had an average

growth rate of 20 to 25 percent per year, benefiting both from the general rise of living

standards and from the younger generations' readiness to spend an increasing proportion

of their disposable income on make-up.132 The main consumers of this market are the

127 Usunier J. C., 1992/2000, p 544 128 Ibid, p 455 129 Ibid, p 457 130 Ibid, p 459 131 Li & Fung research centre, 21 June 2005 132 China Daily ; http://www.chinadaily.com.cn/english/doc/2005-06/07/content_449333.htm, last modified 05/06/07, accessed 06/05/04

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women around 20/35 years old (older women generally think that make-up is not good

for the skin133).

South Korea

South Korea is the third Asian market, in value. In 2004, its volume was 4,1 billons

euros.

The sector knew an annual growth rate of 15,8 percent between 1998 and 2002. It met a

4, 8% decline of activity in 2004.

During the last years, the market has found a balance between the up-of-the-line and the

bottom-of-the-line.134

Japan

In 2003, the cosmetic market in Japan was about 17 billions euros. It is a stable market.

Its main target is young people.135 Japanese companies hold almost 70 percent of their

home market, with the leading five manufacturers (Shiseido, Kao, Kanebo Cosmetics,

Kose and Pola), accounting for almost 49 percent of total value sales. It is difficult to

enter such a market but it can be noticed that cosmetics importations increased the last

decades.136

4.2. The culture variables It is important when dealing with marketing in different cultures to understand well

similarities and differences that can exist between them. Asia consists of

geographically, economically, politically, historically, and psychologically different

people.137

4.2.1. Space As Asian people are generally speaking more neutral than affective (according to the

Trompenaars’ dimensions of the culture), there are more subjects that belong to the

“private circle” in contradiction with the public one. Consequently, it may be difficult

for European people, who are generally more affective and have larger public circle, not

to have conflicts with Asian people in “entering” their private circle without

“permission”.138

133 Braconnier, C. et Perrin, V., 2004/11/04, www.missioneco.org 134 Doucet, P.A., and De Ricaud, Y., 2005/12/01, www.missioneco.org 135 Pouzet N., 2005/03/15, www.missioneco.org 136 Gallon, V., 2005, http://www.beauty-on-line.com/ebn/newsletter.asp?eid=123, 137 Gestland R. R., Seyk G. F., 2002, p 11 138 Trompenaar F., Hampden-Turner C.,1993/1997, p 79-82

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4.2.2. Language European people tend to be direct, frank, straightforward language, while Asian people

prefer an indirect, subtle, roundabout language.139

Some words in Japanese are very vague. Different ideographs are used to write what

can make the comprehension and the translation very hard.140 In Japan, context plays a

significant role and the rules of politeness are strict141. The Japanese people prefer

“humanity, reciprocity, a receiver orientation and an underlying distrust of words and

analytic logic142”. All these aspects are visible in their communication style and they

always try to avoid public disagreement in order to save others face143.

4.2.3. High and Low context Middle East countries and Japan are more high-context cultures. Thus, information

spreads rapidly and freely thanks to a constant contact and the links between people.

They communicate in a more implicit way. Germany or Scandinavian countries are low

context cultures. Information is controlled and focused. They communicate in a more

explicit way. Countries like France or England are in the middle of these two

concepts.144

4.3. The influence of culture on some aspects of consumer behaviour

4.3.1. Perception The symbolic value is one of the driving forces for PRC’s consumers’ purchases of

foreign products. In the beginning of the open door strategy, foreign products were

often preferred to local products since PRC’s consumer associated them with

sophistication and modernity. However, it seems that it is no longer the case. One of the

reasons for this decrease is the diminished symbolic and social value of foreign

products. For PRC’s consumers, when design and function are their first motives to

purchase rather than foreign appeal and social status, local brands are likely to be

preferred. As a consequence, the symbolic value of foreign products is a critic factor of

139 Gestland R. R., Seyk G. F., 2002, p 19 140 Usunier J. C., 1992/2000, p 418 141 Ibid, p 419 142 Deresky H., 1997, p 113 143 Ibid 144 Ibid, p 112

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consumers’ decisions to purchase foreign products that surpasses the utilitarian value of

these products.145

One of the Japanese girls said that Japanese think that “it is better to have white skin”

and that “it is more elegant and look a bit more expensive”. “They (Japanese people)

walk with black umbrellas in their hands whereas here people try to have the skin a bit

darker“. She added: “European put blue and other colours and it is very nice but on

Asian it is not looking so nice”.146 The symbolic changes the perception of shapes and

colours. In Asia, it is better to use simple shapes and white, symbol of purity.147 In

Japan, PRC and South Korea, blue is associated with high quality, red with love, purple

with expensive. To Chinese people black on red means happiness. For Japanese people

red over white represents celebration and life force.148

Women from countries closer to Australia will have more “American” tastes: dark

colours with red lip-sticks for example. This trend can be observed in PRC where

preferred and used colours are darker than in South Korea.149 The young Chinese girls

prefer colourful make-up and the most famous product is the gloss150. South Korean

women prefer very light pink or beige colours151.

Cf. Appendix 4 p VII

Concerning the perception of communication, Japanese people prefer implicit and

indirect communication whereas Korean people prefer descriptive advertisement. That

is why advertisement in Japan contains soft-sell appeals. Then, because of the Japanese

tradition which venerates elders, many advertisements show that.152 In Asia, Japan is the

country where the advertisements contain the most information. The second one is PRC

and then Korea.153

Moreover, as cosmetics is a recent market in PRC, the firm must be aware, in its

advertisement, explaining how to use the product and what kind of position it has on the

market.154

145 Zhou L., M. K. Hui, 2003, pp 36-58 146 Japanese Girls interviewed 2, 06/04/09 147 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 148 Madden T. J., K. Hewett, M. S., Roth, 2000, pp 90-107 149 Manager Asian zone, based in Hong-Kong, 06/04/25 150 Braconnier, C. et Perrin, V., 2004/11/04, www.missioneco.org 151 Manager Asian zone, based in Hong-Kong, 06/04/25 152 Usunier J. C., 1992/2000, p 459 153 Ibid, p 460 154 Braconnier, C. et Perrin, V., 2004/11/04, www.missioneco.org

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4.3.2. Motivation Asian people, and especially Japanese, are more in way of pure consumption:

sometimes they buy product, or receive product, only to have it. They do not use it.

European people buy products in order to do replenishment.155

According to the Asian girls interviewed156, make-up allows to be more beautiful, to

feel more self-confident, and to show that they are in a good mood. One of the Japanese

girls added that making-up the morning was a habit. For her, buying make-up is more

about the quality rather than the brand name or the price.157

Japanese customers look for quality in each detail like the packaging and listen to the

advices of the salespersons in the shops.158 In Japan, the use of cosmetics is not the

same than in Europe, it does not have an aesthetic function but a hygienic function. It is

a rule of etiquette, a cultural code.159

4.3.3. Learning and memory The interview with the Chinese girl reveals an interesting point: Chinese women can

follow at university special classes to learn how to make-up and dress-up.160

Two Japanese girls related almost the same make-up application learning process.

Indeed, they have been taught by their mother who did not let them go out with make-

up on until they were trained in make-up art and judged that it was good enough to be

shown outside.161

4.3.4. Age In Asian cultures, status is ascribed according to age162. The Chinese girl’s father thinks

his student daughter is too young to make-up. He thinks she is wasting her time making-

up instead of studying.163 One of the Japanese girls believes that young girls were using

more make-up than older women. According to her, girls start to make-up earlier and

earlier.164

155 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 156 Asian girls interviewed, 06/04 and 06/05 157 Japanese Girls interviewed 1, 06/04/08 158 Pouzet N., 2005/03/15, www.missioneco.org 159 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 160 Chinese girl interviewed, 06/04/12 161 Japanese Girls interviewed 2 and 3, 06/04 162 Gestland R. R., Seyk G. F., 2002, p 28 163 Chinese girl interviewed, 06/04/12 164 Japanese Girls interviewed 1, 06/04/08

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According to the Korean girls interviewed, the young generation prefers a natural make-

up which was not the case before. For example, their mothers use more colours for eye

shadows whereas young girls just put some eyeliner pencil, mascara and powder. “She

(her mother) uses eye shadow with different colours. Now, I think that the make-up is

more natural. My friends and I make-up but it doesn’t have to be too visible. We are

looking for a natural effect.”165

4.3.5. Self-concept The consumers’ interviews reveal that girls that make-up every day do it because it is a

part of themselves. They sometimes cannot go outside without it; they will feel in a bad

mood, less self-confident.166 One of the Japanese girls revealed that she was wearing

make-up because she was afraid of the opinion of people seeing her without make-up.

“it is hard to be without make-up, scary that people see you with make-up and then after

without make-up, hard to show your real face and I am afraid that… they find me ugly

without…not ugly but…”.167

Japanese are nationalist, they like their country and think it is very different from other

countries168. Japanese women see themselves very different from the other Asian girls;

they are persuaded to have a very different skin169. Korean girls generally think, and are

considered, as one of the most beautiful girls in Asia. They think they are very special.

They want point out these particularities. For Chinese people, Japanese’s stay a model

which influences them a lot in their consumptions.170

4.3.6. Group Influence The group influence can be very important. Friends are often those that help in the

choice of products. One of the girls interviewed talk about “the make-up girl”, the girl

who “puts make-up perfectly, she has make-up bag three time bigger than mine, she

shows for me what is good what is not good”. The group allows trying products before

the purchase.171 In Korea, make-up is well seen in the society as long as it is not “too

much” and looks natural172.

165 Korean girls interviewed, 2006/05/02 166 Asian girls interviewed, 06/04 and 06/05 167 Japanese Girls interviewed 1, 06/04/08 168 Manager Asian zone, based in Hong-Kong, 06/04/25 169 Pouzet N., 2005/03/15, www.missioneco.org 170 Manager Asian zone, based in Hong-Kong, 06/04/25 171 Interview Japanese girl 2, 2006/04/09 172 Korean girls, 2006/05/02

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4.3.7. Gender roles In Asian cultures, status is ascribed according to gender.173 A Japanese girl said an

interesting element: “it is very bad now, girls put make-up in train, bus, in public

places…and men don’t want to see that […] it is normal for a woman to look beautiful

and fresh by make-up on but men don’t have to see this process […] my parents don’t

want to meet me putting make-up in a public place. They think it is very rude.”174

According to the Chinese girl interviewed, Chinese men do not like hard make-up; they

prefer a soft one with light colours.175

4.3.8. Attitudes toward change Concerning attitude toward change for make-up, Asian people are very attracted by new

products176.

In Japan, the life cycle of cosmetic products is about six months177. Japanese consumers

always want new products178. In China, the salespersons in make-up shops help

customers to discover and try new products.179

4.3.9. Purchase The pre-purchase research is very important. That can be done by asking a person who

is considered as an expert like the friends or a person in the family, by using Internet or

thanks to the magazines.180

The service quality is one of the most important aspects in Asian countries181. Japanese

people are expert in cosmetics. They need and ask for a lot of different information

before buying a product. For these reasons, salespersons must be well trained and ready

to answer all questions about formulation of the product, concrete product benefices etc.

In South Korea and PRC, people also ask for salespersons’ advices but they are not

looking for a so expert advice.182 A Chinese girl said that when she is buying make-up

in China, one or more hostesses help her in her choice. She does not find this helpful

service in Sweden and blame it. “In Växjö when I go to Ålhens or H&M, you can

173 Gestland R. R., Seyk G. F., 2002, p 28 174 Interview Japanese girl 2, 2006/04/09 175 Chinese girl interviewed, 06/04/12 176 http://www.lemonde.fr/web/article/0,1-0@2-3234,36-764315@51-751671,0.htm 177 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 178 Pouzet N., 2005/03/15, www.missioneco.org 179 Chinese girl interviewed, 06/04/12 180 Korean girls interviewed, 2006/05/02 181 Manager Asian zone, based in Hong-Kong, 06/04/25 182 Ibid

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choose the product by yourself whereas in China you always have one [hostess] follow

you to introduce the products, I think that is working.”183 The Korean girls confirm it184.

South Korean girls are not very loyal and they try each brand. That is why it is very

important to adapt the products to the consumers’ expectations, to launch new products

quickly and to choose the right influencer. Marketing is very used there to try to make

people loyal, that is why consumers are use to get a present when buying a product.185

4.3.10. Product image 4.3.10.1. Country-product image

In Asia, the world Paris has a luxury connotation. For example, the Chinese girl186 said

that “in China the opinion is that Paris is a romantic place and that the products are

always good”. But the label concept is something that can change. For example, France

is famous for luxury and cosmetics because of its big firms in this sector. But the

Japanese or American brands are famous too so this concept have to be balanced.

However, L’Oréal Paris used its French touch when entering the Asian market. It was

helpful but it could have succeeded with other nationalities.187

The Japanese people do not like foreign products because they think that they are not

adapted to them even if they come from other Asian countries. If the product comes

from a foreign country, they reject it. This way of behaving is common in Japan. For

example, Coca-Cola has to use a completely different packaging there in order to make

people understand that it is a drink especially made for this market. 188

The existence of the Japanese laboratory helps L’Oréal Paris to go round this cultural

aspect of Japanese people189.

At the opposite, Chinese people190 and Korean people191 will prefer a made in France

or made in USA because they will feel more confident with it. For example, the South

Korean girls told us that they prefer using “famous brands” when they do not know a

product and consider that “South Korea is not so popular for cosmetics”.192

183 Chinese girl interviewed, 06/04/12 184 Korean girls interviewed, 2006/05/02 185 Coeffic, B.,2004/02/24 , www.missioneco.org 186 Chinese girl interviewed, 06/04/12 187 Manager Asian zone, based in Hong-Kong, 06/04/25 188 Ibid 189 Ibid 190 Chinese girl interviewed, 06/04/12 191 Korean girls interviewed, 2006/05/02 192 Ibid

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Some foreign goods in PRC have created consumption fads and that they are

dominating the domestic brands not because of the price or quality but because they

symbolize status and modernity.193

Laboratories in PRC and Japan were built also to develop the brand awareness,

spreading the name L’Oréal through the research sector and showing its presence in the

country194.

The sourcing of products can be different according to the market and its

specificities.195 In PRC, the majority of the products are made there thanks to a big

factory. In South Korea, products come from Japan, Europe and PRC and this

international sourcing is also used in Japan.196

4.3.10.2. Company-product image

The brand L’Oréal Paris does not want to become L’Oréal Japan in Japan or L’Oréal

PRC in PRC. It is L’Oréal Paris but adapted to Japan or PRC.197

4.3.10.3. Brand-related product image A brand image which is accepted in Asian cultures will help the company to market the

core products in the region198. The brand “L’Oréal Paris” can benefit from its “luxury

aspect”199 (Cf. country-product image) even if L’Oréal Paris wants to be seen as a

“luxury but accessible brand” 200. Despite this willingness to be accessible and because

of this luxury image in Asian market, L’Oréal Paris is sold with higher prices than

somewhere else201.

4.4. Adaptation strategies used by L’Oréal Paris fo r the product and the promotion

When making products decisions in Asia, marketers must take into account some

points:

- Product acceptability in the particular Asian market

- Selling features and brand-name decisions

193 Zhou L., M. K. Hui, 2003, pp 36-58 194 Manager Asian zone, based in Hong-Kong, 06/04/25 195 Area Manager Caribbean Islands, South and Central America , 06/04/03 196 Manager Asian zone, based in Hong-Kong, 06/04/25 197 Ibid 198 Gestland R. R., Seyk G. F., 2002, p 40 199 Manager Europe zone, Sweden specialist, 06/04/04 200 Manager Asian zone, based in Hong-Kong, 06/04/25 201 Manager Europe zone, Sweden specialist, 06/04/04

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- Labelling requirements, packaging and repackaging needs

- Service needs

- The effect of culture on product decisions.202

Products often need to be modified to succeed in Asia: appearance, packaging, label,

brand and display are variable that easily change. Companies use different strategies to

position a product in Asia. The approach often used for cosmetics consist of offering a

same or similar product but under different names or brands.203 Keeping these last

elements in mind, the strategy of L’Oréal Paris is going to be described through the

interviews with L’Oréal Paris managers and the information available in the press.

4.4.1. L’Oréal knowledge about its market According to L’Oréal homepage, the company tries to know more about the Asian

markets, the consumer behaviours and their expectations. It organizes tests and surveys

to get information about the differences of the Chinese skin (one of the first study of

this kind) according to the habits Chinese people have, the food they eat, etc.204

The manager of Asian Zone interviewed revealed that there are some qualitative

researches with tools like focus group made everywhere in the world. L’Oréal also

organizes some “experiences” in giving a product to a consumer test for few days and

then in asking her questions about how she used it, the frequency of utilization etc.

Then, some other “experiences” are organized where some specialists look, through

special mirrors, how women use the products. All these researches help the firm to

know more about the routines of its consumers in order to adapt the product to each

specificity.205 L’Oréal also does some “call back” researches and uses Consumer Reply

Management (CRM) to know more about the customers. This last tool consists in an

information data base made thanks to the documents fill in by customers in shops. It

enables then to do some more customized offers to the customers and to create loyalty

operations.206

202 Gestland R. R., Seyk G. F., 2002, p 39 203 Ibid, p 41 204L’Oréal, http://www.loreal.com/ , accessed 2006/04/10 205 Manager Europe zone, Sweden specialist, 06/04/04 206 Manager Asian zone, based in Hong-Kong, 06/04/25

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L’Oréal also buys some researches that are made in the local market or participates to

specific surveys with other brands in order to know more about its customers through

different levels.207

4.4.2. Product strategy 4.4.2.1. Standardization of product

In general, the names are in English but there are some exceptions. For example, in

France, names are in French (the foundation “True Match” is called “Accord

Parfait”)208.

L’Oréal tries to have the same packaging as long as it is possible. Indeed, as some

products are more fluid for example, then, the packaging must be adapted. There is a

common research and development basis made thanks to laboratories.209

L’Oréal Paris tries to work with the same product portfolio in the European Zone.

All the formulations are the same and L’Oréal tries to create range of products that can

fit everyone in Europe. We will see later that in Asia the formulations are a bit

different.210

4.4.2.2. Adaptation of product Two of the Japanese girls interviewed said that they were not finding in Europe all the

make-up products that they used to buy in Japan. The two girls revealed the main

difference was that some colours were not available in Europe for some products.211

The other girl said that she find almost all the products that she wanted in Sweden.212

Are L’Oréal Paris products the same in Europe and in Asia? What are L’Oréal Paris

managers revealing about the main products changes between these two markets?

Physical attributes

L’Oréal adapts its colours’ palette according to the countries213. For example, colour are

lighter in north of Europe and Asia214.

The formulation of products in Asia differs from the European’s one215. Moreover, the

expectations are different in all the countries in the Asian zone. For example, Japanese 207 Area Manager Caribbean Islands, South and Central America , 06/04/03 208 Manager Europe zone, Sweden specialist, 06/04/04 209 Ibid 210 Ibid 211 Japanese Girls interviewed 2 and 3, 06/04 212 Japanese Girls interviewed 1, 06/04/08 213 Area Manager Caribbean Islands, South and Central America , 06/04/03 214 Manager Europe zone, Sweden specialist, 06/04/04

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people do not like having the same products than other countries in the Asian zone (they

think that they have very special needs and do not like products that are not adapted for

them) firms have to adapt some simple aspects of certain products like the brush for

mascara.216

It can also be different because of the trends. Indeed, the actual trend is not to be tanned

in Asia. L’Oréal puts some Sun Protection Factor (SPF) in its foundation in order for

women to be protected from the sun.217 A same product can be declined in several

different versions with different SPF218.

Packaging

In Asia, modifying packaging is a delicate point. In Japan, aesthetic is as important as

the physical features of the product. Even the very small imperfections can be a cause of

rejection of a product219. It is also important to pay heed to the size and format

standards. They have an important role in the product acceptance but they vary from an

Asian country to another one.220 In Japan, the packaging for cosmetic products must be

small, simple, “Zen”, few coloured, often white, like pharmaceutical products in

Europe221. Because the service quality is more important in the Asian zone and because

L’Oréal Paris does not sell its products in supermarket there, the packaging is different

in Asia and is more like the one we can find in selective marketing than in mass

marketing.222

Then, as said previously, some packaging also need few adaptations because of the

fluidity differences of their contents.223

Cf. Appendix 5 p VIII

Service attributes

In Asia, cosmetics are more than just a product; they are linked to a service.

Salespersons

They have to be very well trained because Asian people, in general (especially the

Japanese), are expert in cosmetics and ask very specific questions before buying

something. Moreover, they are waiting for a good service quality and some advices.

215 Manager Europe zone, Sweden specialist, 06/04/04 216 Manager Asian zone, based in Hong-Kong, 06/04/25 217 Manager Europe zone, Sweden specialist, 06/04/04 218 Chinese girl interviewed, 06/04/12 219 Gestland R. R., Seyk G. F., 2002, p 41 220 Ibid, p 42 221 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 222 Manager Asian zone, based in Hong-Kong, 06/04/25 223 Manager Europe zone, Sweden specialist, 06/04/04

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Therefore, salespersons have a minimum of two weeks of trainings before starting

working and some other training to up-date and improve their knowledge.224

Advices

It is an important part of the quality. Some special tools are created to make the “advice

part” easier and more technical. For example, L’Oréal Paris has a special way of testing

the skins of people in order to advice them the right product to have a specific expected

result.225

Corners, point of sale

Special corners of around 20 m2 are organized in the shop with salespersons giving

advices and answering the consumers’ questions.226

Symbolic attributes

Colours in packaging must be used carefully227. Asian consumers can feel an added

value thanks to the service since they attach a great importance in quality.228

4.4.3. Promotion strategy The most important to succeed in marketing promotion purposes in Asia, which has a

collectivist culture, is to build relationship and trust between companies and consumers

and to develop a strong company brands rather than relying on the development of a

portfolio of competitive product brands. Finally, cultural variables increasingly explain

the differences in country-level behaviour.229

4.4.3.1. Standardization of promotion L’Oréal Paris promotion is made on a global basis: global message, global concepts,

global top models etc.230

There are two global and general concepts for promotion: “luxury but accessible” and

“global beauty brand”. Both create the global image of L’Oréal Paris.231 These parts of

the promotion are the heart of the communication strategy of L’Oréal Paris. The brand

name “L’Oréal Paris” is the same everywhere.232

224 Manager Asian zone, based in Hong-Kong, 06/04/25 225 Ibid 226 Ibid 227 Gestland R. R., Seyk G. F., 2002, p 42 228 Coste-Manière, I., Dealer of advertising company Parfums Cosmétiques Actualités, 2006/04/26 229 De Mooij M., 2003, pp 183-202 230 Manager Europe zone, Sweden specialist, 06/04/04 231 Manager Asian zone, based in Hong-Kong, 06/04/25 232 Area Manager Caribbean Islands, South and Central America , 06/04/03

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“Global beauty brand”

This is the concept used by L’Oréal Paris, especially in advertisements and in the choice

of the top models. The global beauty brand is a specific concept of the beauty. It can be

implemented in the different countries easily since it highlights the specificities of the

beauty of each continent and spreads L’Oréal Paris’ beauty values, a “L’Oréalienne

beauty”. For example, Laetitia Casta and Andie Mc Dowel are in L’Oréal Paris’

advertisements everywhere in the world because she communicates L’Oréal Paris’

image and can be seen as a L’Oréal Paris beauty in the different market in the world.233

Media strategy (pressing)

L’Oréal Paris invests a lot in advertisements. Its media strategy is everywhere a real

pressure on the media market compared to the other brands.234

4.4.3.2. Adaptation of promotion Promotion is generally global but the firm must sometimes adapt it to a specific

target235. It is difficult to advertise products specialized for older persons in Asia since

elders are respected there. So firms have to adapt their promotion in such a way that

they do not lose their customers. “Firms have to be careful”. South Korean women are

very sensitive when it comes to advertisement and the pictures shown.236

Moreover, there are “worldwide advertisements” made with international top models

and spreading the values quoted before and some more “special advertisements” made

with top models that have more local images like Gong Li (Chine) or Aishwarya

(India). Thank to that, people can understand that L’Oréal Paris is an international brand

but they can recognize them in a more familiar top model: same nationality and same

physical characteristics.237

Each country has its own website in its own language238. Moreover they emphasize

different products and have a specific presentation. It is done in order to adapt and

customize the promotion239.

Cf. Appendix 6 pp IX-X

233 Manager Asian zone, based in Hong-Kong, 06/04/25 234 Ibid 235 Manager Europe zone, Sweden specialist, 06/04/04 236 Manager Asian zone, based in Hong-Kong, 06/04/25 237 Ibid 238 Ibid 239 Ibid

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The Chinese girl told us that advertisements for make-up are not the same in China and

in Sweden. In China, advertisements are more oriented to the way how to use the

product.240

Therefore it is all about having the right balance between “global” and “local”

advertisements in order to create the international brand image but to stay close to

people from different nationalities.241

5. ANALYSIS

As seen in the theoretical and the empirical part, culture is one of the elements which

influence the consumer behaviour, what can impact on the firm strategy. The aim of our

paper is to understand the influence of culture on the consumer behaviour and to explain

in what ways the consumer behaviour is influencing adaptation strategy investigating

L’Oréal Paris in the Asian Zone (Japan, South Korea and PRC) in order to determine if

cultural differences influence L’Oréal Paris adaptation strategy for its products and

promotion.

The links between the cultural and the consumer behaviour aspects are numerous and on

different levels. Indeed, consumer behaviour is influenced by culture in a direct and in

an indirect way. The direct way is when cultural dimensions have a direct influence on

consumer behaviour. These elements of consumer behaviour will be named primary

consumer behaviour aspects. The indirect way is when the cultural dimensions

influence some consumer behaviour aspects which influence other consumer behaviour

aspects. These elements of consumer behaviour will be named secondary consumer

behaviour aspects. Therefore, there are different levels of consumer behaviour aspects.

Cf. Figure 6

To make the analysis easier to read, we will start by the presentation of the cultural

differences impacting on the secondary consumer behaviour aspects. Then, we will

analyse the cultural differences and the secondary consumer behaviour aspects

influences on the primary consumer behaviour aspects. Thanks to that, we will analyse

the adaptation strategy of L’Oréal Paris.

240 Chinese girl interviewed, 06/04/12 241 Manager Asian zone, based in Hong-Kong, 06/04/25

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5.1. Cultural influences on secondary consumer behaviour aspects

The secondary consumer behaviour aspects are the gender role aspect, the attitude

toward change, the self concept, the age, the learning and memory and the group

influence.

5.1.1. The gender role aspect Firstly, the masculinity/femininity index of Hofstede influences the gender role.

Japanese people have a masculinity index of 95 whereas the Chinese one is around 50

and the South Korean is 39. This also explains the value orientation in the country:

more feminine (harmony, family) or masculine (self achievement, money). This

diversity explains the different ways of seeing the relationship in a couple for example

and the division of tasks which may be more segmented in a women/men way in Japan

than in South Korea.

Secondly, the power distance influences the gender role since it implies the degree of

adaptation of the power distribution. Asian people have high power distance what

means that the inequalities of power are more accepted. This may imply more inequality

in the gender role distribution.

5.1.2. Attitude toward change The uncertainty avoidance may influence the attitude toward change in the different

cultures. The more individuals from a culture want to avoid uncertainty, the less

favourable they will be toward change. In fact, change means going toward something

new. This can be seen negatively by individuals who want to avoid change as risk is too

high. In the Asian zone, the Japanese and the Korean people have high uncertainty

avoidance (respectively 92 and 85) whereas the Chinese have low uncertainty avoidance

(39). Therefore, the Chinese people may have more facilities to change and to adapt to

new situations.

Universalism versus particularism may be a variable that impacts on the attitude toward

change. For the universalist, what is true and good can be applied everywhere whereas

the particularist favours relationships. Sweden and Germany are 74% universalist while

South Korea is 42%. For the universalist, if he/she considers that the change is good, it

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will be applied in all the circumstances. For the particularist, if he/she considers a

change can be good, it does not mean that it is always good.

5.1.3. Self concept Individualism versus collectivism influences directly the self concept. Indeed, in more

individualist cultures the self is going to be more considered than in collectivist

cultures. As observed in the theory, Asian people are generally more collectivist.

The masculinity/femininity aspect can also be taken into account. These elements will

have an impact on the way of seeing the self. Masculinity aspect emphasizes more

personal point of view whereas femininity highlights harmony.

5.1.4. Age The power distance (Hofstede) may influence the age aspect. As explained above, Asian

people have high power distance. It means that the inequalities of power are more

accepted. This may change the age hierarchy and the level of respect for each age

group. That may explain that some categories like the elders are more respected than

others in Asia.

5.1.5. Learning and memory The individualist versus collectivist index of Hofstede influences the learning and

memory as it is easier to communicate and share memories and knowledge in a

collectivist country, where the “we” is emphasized. As Asian countries are generally

more collectivist, they may have more facilities to learn and share knowledge.

5.1.6. Group influence The individualism versus collectivism Hofstede’s dimension has an impact on this

aspect. PRC and South Korea are highly collectivist and Japan is moderately

collectivist. This cultural aspect has an impact on the group influence since individualist

countries will perceive the group influence not as strong as collectivist countries.

The Neutral versus Affective dimension (Trompenaars) refers to the fact of showing its

feelings or not. Japan is a neutral country (74%). PRC obtains a medium score of 55%.

This will impact on the group influence since it will change the relationship between

people: their conversation subjects, their attitudes and reactions.

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5.2. Global mechanism showing the influence of culture on the firm adaptation strategy through the primary consumer behaviour aspects

The primary consumer behaviour aspects are the perception, the motivation and the

purchase.

5.2.1. Perception Cultural influences on the perception aspect of the consumer behaviour

Some aspects of the culture, like the language, are probably more visible. It has an

impact on the perception. As it is mentioned in the empirical findings, Asian and

European people have different ways of speaking. Asian people are vaguer, indirect and

pay heed not to offence people whereas European people are more direct. Being frank

will be well perceived in Europe but not accepted in Asia.

This notion is very close to the high/low context one. Indeed, Asian people are more

“high context” culture. The influence of the context on the comprehension and the

interpretation is of great importance and can create a completely different meaning

and/or a misunderstanding.

The way of seeing space can also impact on the perception. For example, in Asian

cultures, lot of subjects belong to the private sphere and are not supposed to be

broached in public situations. This may impact on the interpretation of a conversation

with salespersons or of an advertisement. The mechanism is the same with the

specific/diffuse dimension (Trompenaars’ dimension). Asian countries are

predominantly diffuse. This changes the perception of relationship since private and

public life are closer. That explains why they are less direct and need more time to

create relationships.

Emotions and the way of dealing with them impact on the perception. More emotional

people may interpret situations and things in a different way, giving more sense and

interpreting symbols. That also changes the perception of the communication because

sensitive persons may show more their personal opinions. There are two elements in the

culture which can be helpful to understand emotions: masculinity/femininity and the

neutral versus affective dimensions. Indeed, Asian countries are more neutral than

affective. They do not show their feelings and give the impression of controlling

themselves. This tendency is confirmed by the fact that Japan and PRC have a high

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masculinity level, what highlights the fact of hiding emotions. However, Korean people

have a lower masculinity index. That shows the difficulty of treating all the countries of

the Asian zone in the same way.

Consumer behaviour aspects influencing the perception

The self-concept influences the perception since it changes the way people see

themselves. For example, for make-up, girls interviewed said that the make-up was a

part of them. That might turn the make-up into something more personal.

The age influences the perception. In Asian cultures the perception of older people is

different than in European cultures. Indeed, in Asian countries, elders are treated in a

more respectful way.

Group influence is another important point since the pressure of the group and its

opinion will act on the way of perceiving and interpreting situations. The interviews

with the Korean girls can be a good example of the group pressure that acts on

perception. Indeed, one of the girls said that make-up is accepted as long as it is not too

much. Therefore, this notion of “too much” is properly group influenced since it is

created and dictated by the group values.

In the same mechanism of pressure, we may talk about gender roles aspect. This will

influence the role and the place of women and thus modify the perception of what can

be done or not. One Japanese girl said that men do not want to see women while they

are making-up. It reveals a certain relationship between men and women which can be

different from countries to countries, even in the Asian zone.

The attitude toward change also influences the perception as some consumer will be

more attracted to new products, new packaging etc.

The last element is the relationship people have with the brand-, firm- and country-

image. For example, France has a luxury image in Asia and L’Oréal Paris a quality one.

This superposition of values may create a positive attribute for L’Oréal Paris when

launching products in Asian market. This image is different in the Asian zone.

Chinese’s and Korean’s prefer this brand because they consider that France is well

known for cosmetics. On the contrary, Japanese’s are more suspicious and think that it

is not a Japanese brand and that is not a product especially made for them.

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(This last notion is not explained in the first part since it is not directly linked to one specific point of the

culture. However, it is influenced by the culture in general. )

Consumer behaviour influences on the firm adaptation strategy

As demonstrated before, some aspects of the culture and of the consumer behaviour

influence the perception of the consumers. This will have an impact on the perception of

physical attributes, packaging, service attributes, symbolic attributes and promotion.

The firms have to be aware of these differences.

Physical attributes

The physical canons are different. It is well seen in Asia to have a white skin. Thus,

L’Oréal Paris adapts its products to the perception of beauty. In Asia, foundations have

a very light colour and contain a special molecule in order for the skin not to tan.

This tendency is a bit different in PRC where cultural influences are more “American”

oriented, what implies darker colours utilisation.

Packaging

The perception of the packaging is also different. In Asian countries, it must have

simple shapes and colours. In order for the customer to perceive the packaging in a

more friendly way, L’Oréal Paris adapts shapes and colours.

Cf. Appendix 5 p VIII

Service attributes

As we said before, the high-low context, the language and the space influence the

perception. Those elements are of great importance when considering point of sale. The

way salespersons address the customers or the way the corner is organized will be very

different according to the culture of the country. As Asian people are more “high

context” culture, the points of sale are organized in corner and the salespersons are

trained to answer the maximum of questions. Everything is made to create a rich context

where the Asian customers could be pleased and have a positive perception of L’Oréal

Paris. Moreover, the quality aspect is very important. It makes the perception of the

service quality (advices, environment) more crucial.

The perception of the self concept might impact on the level of adaptation of the service

attributes. Indeed, with a higher degree of services provided by the firm, the consumer

can feel valued. This can be of great importance in cultures where the individuals

consider themselves to be important, and then it is necessary for the companies to treat

them the way they perceive themselves.

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Symbolic Attributes

Because “made in France” has a luxury image, it was easier to gain credibility in Asian

countries when L’Oréal launched L’Oréal Paris there. However, since Asian people

(especially Japanese and South Korean) think they are different and need adapted

products, L’Oréal Paris “played” with the sourcing effect. It created factories in China

and in Japan to do researches and sell more adapted products. But this is also a question

of promotion. The factories enable L’Oréal Paris to adapt its products to the consumer

willingness of being treated in a unique way. The name “L’Oréal Paris” creates a

positive and luxury image. Therefore, the perception of the products is optimized.

Promotion

Since Asian people generally look for more information, we noticed that L’Oréal Paris

Asian web sites contain some video showing the utilisation of the products.

Moreover, because they want to be treated differently, each country has its own web site

with its own language.

Cf. Appendix 6 pp VII-VIII

For the same reason, L’Oréal Paris has different advertisements with Asian top model in

addition to western one. The aim, once again, is to create an international L’Oréal Paris

but with Japanese values in Japan, Korean values in South Korea and Chinese values in

PRC. All these elements will create a positive perception since they all follow the rules

dictated by the culture and the consumer behaviour. Moreover we can notice that it is

important to respect the neutral/affective aspect of culture in the construction of the

messages.

The perception of the self concept may influence the level of adaptation of promotion

with the same mechanism than the one for the service attributes adaptation explained

above. For example, the brand uses local models. Women can identify to them since

they share the same physical characteristics, they have the same culture and the same

nationality.

The age is also important since it informs on how to address people. It will be done on a

more respectful way with elders because the Asian cultures respect older people more.

The perception aspect influences the adaptation of physical attributes, packaging,

service attributes, symbolic attributes and promotion.

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5.2.2. Motivation Cultural influences on the motivation aspect of the consumer behaviour

First, the culture influences the hierarchy of needs in a different way whether we

consider Asia or the West part of the world. At the bottom of both pyramids of Maslow

we can find the physiological needs because they are the most fundamental. On both

pyramids we find safety in second position. Safety needs emerge when the

physiological needs are fulfilled. The two pyramids differ on the third element: the

western part of the world considers that belonging is more important whereas for Asia it

is affiliation. The fourth need is different as well, the Western’s considers that prestige

is the most important, instead Asian’s believe that admiration is best. Finally, in fifth

position comes for west the self-satisfaction. In Asia, the most important is the status.

As a consequence, it can be said that people from Asia, since they have their

physiological and safety needs satisfied, are going to focus on needs that take into

account the rest of the society. The notions of admiration and status imply that there are

some other people around who create a scale of comparison. In the western part of the

world, after the physiological, the safety and the belonging needs, the rest of the needs

are more individual oriented. (This notion is not explained in the first part since it is linked and

influenced deeply by the culture.)

This hierarchy of needs can be linked to the individualism versus collectivism

Hofstede’s dimension. Indeed PRC and South Korea are highly collectivist and Japan is

moderately collectivist. Thus the motivation of people will depend more on the other

members of the group.

Masculinity versus Femininity Hofstede’s dimension can also play a role in the

motivation. Japan is a very masculine country, PRC is in the average and South Korea

has more feminine values. The motivation of Japanese may have more masculine values

like money or power whereas the South Korean motivation may have more feminine

values like family or well being.

The uncertainty avoidance dimension is another important factor of influence in the

motivation. It evaluates the ability to incur a risk. Japan and South Korea people have

high score, they need for a lot of information in order to feel secure. They look for

quality in each detail like the packaging. They listen to the advice of the salespersons in

the shops to be sure that the product is adapted to them. At the opposite, Chinese

people, who have a lower score, are not afraid by the decision-making.

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Consumer behaviour aspects influencing the motivation

The learning and memory aspect impacts on the motivation. For Japanese girls, make-

up is an ancestral tradition; they learnt how to proceed by their mothers and their

mothers by their own mothers etc. Sometimes, they did not learn it; it is innate, in the

common memory. For Chinese girls it is different. The use of make-up has been

controlled for many years, women have forgotten how to proceed, and they need to be

trained for that, some of them follow courses in this purpose.

The self-concept has an impact on the motivation since the make-up is considered by

the interviewed girls as a part of themselves. Wearing make-up, they will feel more

beautiful and then they will feel more self-confident.

The group influence has a great impact on the motivation. It is often thanks to that the

person discovers a product. The group creates a motivation to own. As seen previously,

the group influence depends on some cultural dimensions, but it can also be linked to

other consumer behaviour aspects, that are likewise conducted by culture. The age, for

example, is important. At the age of the interviewed girls, the age cohort has a great

influence. It is important to be “in”, respecting the group rules. Using some specific

products can be one of the rules. The age motivates a purchase since there are

differences in the way to make-up between generations. Young Korean girls for

example use lighter and more natural make-up than their mothers. The group and the

society dictate the trends. These trends, like the fact not to be tanned, influence the

motivation.

The gender role impacts indirectly on the motivation. Indeed, the society is conditioned

by believes about gender role. It will inevitably influence people. The use of make-up to

be “beautiful” can also be an implicit masculine rule: women must be beautiful for

men.

The attitude toward change influences the motivation. This influence can be positive

like when consumers always ask for new products. It can also be negative if people are

scared by novelty.

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Consumer behaviour influences on the firm adaptation strategy

As the Maslow’s hierarchy of needs is not the same in Asian countries, the motivation is

changed when buying a make-up product. The firm must have that in mind when

creating new products and promotion.

Physical attributes

In Asian zone, girls learn about make-up thanks to their mothers or their friends. To

follow the motivation inspired by groups, L’Oréal Paris must adapt the formulation of

its products (SPF in foundation to keep a white skin).

Packaging

As highlighted in the field, the Japanese culture uses make-up for a more hygienic

function than aesthetic one. These characteristic is taken into account by the firm. The

approach of the packaging is simple, like for the pharmaceutical products.

Service attributes

As the learning and memory has an important place in Asia, L’Oréal Paris trains

salespersons to advice the customers in the most technical way as possible. All those

elements answer in a positive way to the specific motivation of Asian people.

Symbolic Attributes

We have no information allowing analysing this point.

Promotion

As seen in the empirical part, L’Oréal Paris promotion is global. However, there are

some adaptations according to the culture. This adaptation depends on the consumer

behaviour aspects. For example, the women’s main motivation to make-up is to feel

good and beautiful. However, we see in the self-concept aspect that they have to

recognize themselves in the advertisement to give it credit. That is why L’Oréal Paris

adapts the advertisement with local top models. Women can identify to models. All

these points are also respected on the websites; in a more detailed way since it is easier

and cheaper to do.

Since the Asian people have generally a high uncertainty avoidance, L’Oréal Paris uses

every effort in its promotion to give them information on how to use the products, how

it is made, what kind of molecule etc.

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Information about group influence is of great importance for advertisement and

communication as it “shows” who the firm has to target in order to spread its message

to the maximum of persons.

The motivation aspect mainly influences the adaptation of promotion.

5.2.3. Purchase The influence of culture on the purchase aspect of the consumer behaviour

The space is an aspect of the culture that may influence the purchase process of the

consumer. The vision of space varies across the cultures and this might impact on the

relationship between the buyer and the seller. In Asian and European cultures, the

notion of space differs. Asian’s have a more private consideration of space and it is

considered as rude to enter this space without permission. This is an important concept

to consider during the purchase.

The language is an aspect of culture that directly impacts on the purchase. Language can

cause misunderstandings and it is conducted in parallel with body language that can

change the meaning of the content. It means that even people sharing the same language

can meet nuances, which can create misunderstandings. Consequently, language has to

be considered carefully during a purchase. Furthermore, Asian people are more

roundabout in their way of speaking whereas European people tend to be more direct.

The power distance also influences the purchase. Indeed, across cultures the relationship

between the buyer and the seller is subject to change as the power distance differs

between cultures. As an example, in China the power distance is 78 whereas it is only

68 in France and 31 in Sweden. This means that the buyer and the seller in China are

going to have more formal relationship and that is going to be well accepted by both

parts. This different kind of relationships is going to interact on the way the purchase is

done. The language that is used is not going to be the same.

The uncertainty avoidance can also influence the purchase. Across cultures, the

uncertainty avoidance is varying. As an example, in Japan the uncertainty avoidance is

92, whereas in France it is 86, and only 29 in Sweden. In the purchase, the consumer

that wants to avoid uncertainty, like the Japanese, is going to be less likely to impulsive

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purchase. This kind of consumer is going to gather more information before the

purchase because he/she is more afraid of the risk at stake.

Individualism versus collectivism can impact on the purchase. If a society is more

collectivist the individuals are not going to have the same values and they are not going

to spend their time and budget on the same kind of purchase. For example, in China, the

individualism is 10 whereas in Italy it is 76. This is going to impact on the pre purchase

and on the kind of purchase. An Italian girl might feel less guilty after buying one item

of make-up than a Chinese girl, as in Italy individualism is high and acts that are done

in order to please oneself are considered to be the norm.

Neutral versus affective is also a variable that can impact on the consumer behaviour

during the purchase process. The communication between the seller and the buyer will

not be the same. The arguments used by the seller to make the consumer buy the

product are not going to be the same either. As an example, Japan is 74% neutral

whereas France is 30%. Arguments used in Japan should be more technical while in

France they should imply a more emotional dimension.

Finally, specific versus diffuse is another aspect that is going to impact on the consumer

behaviour. This aspect might influence the relationship between the firm and the

consumer, and, by this way, might influence the purchase as well. Indeed, in specific

cultures the relationship between the company and the consumer will be more formal

whereas in diffuse cultures the company will have to create a relationship with the

consumer before thinking of business. Then, the purchase is influenced by the fact that a

relationship has to be established before. It might take more time to convince consumers

in diffuse cultures. Great differences between countries can exist. For example, PRC is

25% specific whereas Sweden is 90%.

Consumer behaviour aspects influencing the purchase

The perception might influence the purchase. As an example, the way of how

consumers from different cultures perceive colours can impact on the purchase. If the

colours of the packaging are not favoured by a culture, it is going to make the purchase

more difficult.

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Motivation also plays a role in the purchase process. Asian people are more in a way of

pure consumption whereas Europeans shop more for replenishment. This is a different

way of seeing purchase.

Learning and memory may impacts on the purchase. Indeed, the learning and the

memory is shaped by the educational system. The familiarity with the product classes is

created by the education. The level of familiarity with the product is impacting on the

way the purchase is done. The less the consumer have knowledge about the product the

more the firm will have to communicate knowledge to the consumer. Therefore the

purchasing process might be likely to change in order to cover the lack of knowledge of

the consumer. The firm will have to use other tools, like a sales force that is trained to

explain better to the consumer the way to use it.

Age can influence the purchase. Indeed, one Japanese girl revealed that young girls

were using more make-up than older women. This means that in Japan the younger

generation will be more attracted to make-up and will be the main target.

Group influence might have an impact on the purchase. Consumer behaviour can be

dictated by the group belonging. Friends are often those that help in the choice of

products. One of the girls interviewed talked about one of her friend called “the make-

up girl” because she uses make-up perfectly. This friend is always advising her on what

to buy and what not to buy. This means that the group influence can be very strong and

that influences the process of purchasing.

Gender role can impact as well on the purchase. The way men see make-up in a culture

and the influence they have on women can impact on the purchase. Indeed, a Chinese

girl said that Chinese men do not like the hard make-up. This element might influence

the purchase and prevent the girls from buying make-up that is too flashy.

Some cultures have a more positive attitude towards change than others. That can

impact on the consumption of new products for example. People from cultures with

positive attitude toward change may accept better products that are less adapted. They

might be less reluctant to try new different products.

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The influence of consumer behaviour on the firm adaptation strategy

As explained before some part of the perception and motivation aspects are taken into

account in the strategy adaptation. Then, those quoted elements have an impact on the

purchase issue.

Physical attributes

We have no information allowing analysing this point.

Packaging

We have no information allowing analysing this point.

Service attributes

The purchase impacts directly on the service attributes. Indeed, the changing level of

familiarity towards make-up items across different cultures has to be considered by the

firms when they adapt their service attributes. Cultures with a lower level of familiarity

will need to be well “trained” by the firms in order to accept the product better. As an

example, L’Oréal Paris adapts its service attributes by educating the sales force in Asia

and creating the possibility for the consumer to receive detailed advice from the sales

persons. It is not the case in Europe. L’Oréal Paris adapts its service to the uncertainty

avoidance of Asian people.

The service attributes may as well play another role. As the Chinese are collectivist,

stronger service attributes might be necessary to convince them to buy make-up items

that are addressed to a more individualist use.

Since Asian cultures have a high uncertainty avoidance, they are less subject to

impulsive purchase. The role of the sales person is to go against this tendency

convincing consumers to buy new products.

Symbolic Attributes

The consumer does not only buy make-up for its utilitarian purpose, he/she buys a

formulation, a packaging, a service, etc. All these elements create the symbolic value of

the purchase.

Promotion

We have no information allowing analysing this point.

The purchase aspect mainly influences the adaptation of service attributes.

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Figure 6: Relations between cultural

dimensions, consumer behaviour

aspects and company’s adaptation

strategy.

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6. CONCLUSION

As it is explained in the analysis, the elements of culture influence the consumer

behaviour since they change the way of analysing a situation, reacting to it and

behaving in general. For example, people with high uncertainty avoidance culture will

perceive and react in a more negative way to change or to impulsive purchase. There are

many different elements in culture and the way of influencing consumer behaviour is

diverse enough to explain the diversity which can be observed between two markets like

the French and the Japanese one. Moreover, the consumer behaviour is also made of

different elements which complete each others. The culture can impact on the consumer

behaviour aspect in a direct and indirect way what creates the complexity of consumer

behaviour.

Those consumer behaviour aspects will be analysed and used by the firms in order to

create and implement the most profitable strategy. For example, in L’Oréal Paris,

marketers and researchers try to understand the needs and wants of the actual or future

consumers. They organize many surveys and studies in order to investigate the

differences between markets and to answer to the demands.

The Asian market has its own specificities and its own culture. The way people perceive

the product or the promotion, the way they motivate their choice or purchase is unique

and L’Oréal Paris adapts many of its product elements in that way. First, about the

product, L’Oréal Paris changes some physical aspects like the colours of the product

(perception)* or the formulation (self concept, group influence)*. It also adapts the

packaging attributes putting more details to the quality or the aesthetic aspect

(perception)* and highlighting the luxury image of the brand (brand- and country-

image)* thanks to a more “Zen” and simple packaging. Moreover, the service attributes

appear in a more obvious way in the Asian zone (uncertainty avoidance, purchase)*.

There, the salespersons are especially trained to answer all the questions possible

(learning and memory)* about the molecule of the product or the way of using it, and

they advice the customers in the most technical way (uncertainty avoidance)* thanks to

some special programmes helping to know more about the specificities of each skin.

The point of sales is also adapted with a more “luxurious” and personal concept

(motivation, perception)* and the symbolic attributes are taken into account in the

colours range (perception)* which is lighter.

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The promotion is adapted to the consumer behaviour differences too. L’Oréal Paris uses

local top-model to enable people to recognize their own country in the advertisements.

It creates some special web sites for the countries (self concept, perception)*. Moreover,

in China, L’Oréal Paris adapts its promotion to the fact that Chinese expect more

information about how to use the products (attitude toward change)*.

Many adaptations are made by L’Oréal Paris because of the culture differences in the

Asian Zone. But this can be balanced. A lot of aspects are not adapted even if cultural

differences should suppose it. It is the case of the promotion. It has an important

standardized part since the entire concept and the “spirit” of the brand are the same

everywhere: “global beauty brand” and “luxury brand but accessible”.

Even if Japan, South Korea and PRC are culturally different, the field work revealed

few differences in the adaptation of the products between these countries. Moreover,

these differences are more for physical than for cultural reasons.

However, even if the general opinion is that the main concepts are standardized, it is

important to remember that the adaptation often concerns details on the product, its

packaging, its services, its symbolic attributes and its promotion. As an example, the

service package, even if it is not as obvious as the core product, makes the difference in

the Asian market.

L’Oréal Paris has to do some choices and its strategy may be to find a right balance

between “worldwide” and “special” promotion and products in the Asian Zone. That

can be sum up by the L’Oréal Paris concept, the “Global beauty brand” concept: a

worldwide French brand which knows how to be loved and adapt itself in other

countries than France.

To conclude and to answer our research question, cultural differences may influence

L’Oréal Paris adaptation strategy for the make-up products and their promotion.

The following model shows the elements of culture used (unconsciously or not) by

L’Oréal Paris for its adaptation strategy, physical attributes, packaging, service

attributes, symbolic attributes and promotion.

* The elements into parenthesis are some examples of elements of culture or consumer behaviour which implies the change done. The conclusion

model recapitulates all of them.

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Figure 7: Relations between

cultural dimensions, consumer

behaviour aspects and L’Oréal

Paris’ adaptation strategy.

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7. FINAL DISCUSSION

7.1. Recommendation Since a link between culture and adaptation strategy has been demonstrated, it might be

interesting for companies like L’Oréal Paris to study in depth the different cultures of its

markets. This will allow adapting some aspects of product and promotion in a more

effective way.

7.2. Further research directions Our research is focusing on the culture and the consumer behaviour influence on the

firm’s adaptation strategy, investigating L’Oréal Paris case. It would be interesting to

study the impact of the other elements on the adaptations strategies. Indeed, these kind

of empirical researches are needed by firms in order to help them in their adaptation

strategies on new markets. Further researches could focus on the impacts of political

and legal environment, economy environment or on the level of technology.

Our research focuses on three of the biggest markets in Asia, (Japan, PRC and South

Korea). We believe that empirical research is needed as well on other markets in order

to provide firms with knowledge about the market that is as accurate as possible.

Finally, it would be interesting to study the adaptation of the two other elements of the

marketing mix, that is to say the price and the distribution in order to bring to firms a

complete overview of how the elements of the marketing mix can be subject to

adaptation when a firm is breaking into a new market.

7.3. Further discussion

7.3.1. A global consumer: divergence or convergenc e of consumer behaviour?

The culture creates a wide range of consumers but there is also the emergence of a

global consumer culture, in which people, according to Solomon et Al242, “are united by

their common devotion to brand-name consumer goods, film stars and rock stars”.

Consumer culture is generated by the capacity of consumption to create cultural values

and behaviours243. The emergence of a global modern culture is often confused with the

242 Solomon, M. et al., 1999/2002, p 583 243 Usunier, J-C, 1992/2000, p 145

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convergence of local cultures, which lead to a wrong description of the globalization

phenomenon244.

Traditional international trade doctrine denies the influence of culture in the

international marketing. This denial of consumer culture is based on the assumption that

products have no reality as cultural artefacts. As a consequence, consumers are assumed

to invest in a product only for its utilitarian value. In this case, products convey no

cultural meaning.245 However it is difficult to find proof that consumers are globalized

at a micro level. The trend toward globalization depends mainly on which area of the

consumer behaviour is concerned.246

However, some authors are arguing that convergence is a persistent myth of

international marketing. They are stating that there is evidence that consumer behaviour

is diverging in Europe. Culture is an important variable in explaining the differences in

consumer behaviour across Europe.247 The new perspective on consumer behaviour is

based on the cultural meaning of things. If culture matters for consumers then it is more

likely that they are going to spend more on products that are more bound to cultural

interpretation. 248

Cultural differences seem to matter little as they rarely appear as the key explanation for

the behaviour. However local cultures allow a deep understanding of consumption in

particular contexts. Local cultures do not disappear but a common culture is superposed

on the local one.249

7.3.2. Make-up: a paradoxical trend? The actual trend for make-up is paradoxical. On one side, the beauty notion almost all

over the world is determined by European tastes and standards. Blond hair, blue or

green eyes and white skin are longed by a lot of women. To look like this beauty model,

some women dye and smooth their hair, avoid sun, wear colour contact lenses and,

sometimes can also undergo an operation to slit up eyes, to have skin whiter, to be tall,

to change nose or lips etc. ! On the other side, there is the emergence of the

ethnocosmetic. It is about cosmetics adapted to the skin and the hair of people. At the

beginning, this new trend was considered as a marketing trend. It was a free créneau in 244 Usunier, J-C, 1992/2000, p 148 245 Ibid, p 138 246 Usunier, J-C, 1992/2000, p 145 247 De Mooij, M., Hofstede, G., Spring 2002, pp 61-69 248 Usunier, J-C, 1992/2000, pp 148-149 249 Ibid, p 148

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market. Today, this is a reality: skin and hair are different and need specific cares.

Marketing and researchers have to take into consideration these fundamental differences

to adapt their products.

These differences in skin and hair have an important role in the adaptation of products’

formulation. Companies like L’Oréal Paris create local research institutes to perform on

this domain.

7.3.3. A new beauty model? However, we can wonder if the beauty model that we all refer to nowadays is going to

last. Indeed, we have to consider the emergence of countries like China and India,

which count a great number of inhabitants, and the influences they are eventually going

to exert on the rest of the world. When becoming economically more important, a

country sees its cultural radiation increasing in proportion. Therefore, we can wonder if

the beauty ideal of tomorrow is not going to be the Chinese or the Indian type and

become the new reference of all trends.

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Appendices

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II

Appendix 1: Hofstede’s dimensions 250

1. Power distance

Table 1: Main characteristics of power distance dimensions Low Power distance High power distance

- Inequality in society should be minimised

- Equal rights for everybody

- Inequality expected and accepted in society

- Power is the same as privileges and advantages

Table 2: Power Distance scores Asian Zone European Zone

Japan: 54

South Korea: 60

PRC: 78

France: 68

Sweden: 31

Germany: 35

Italy: 50

Index 100 is for country with high power distance.

2. Uncertainty Avoidance

Table 3: Main characteristics of uncertainty avoidance Low Uncertainty Avoidance High Uncertainty Avoidance

- Only essential rules necessary, often informal

- Tolerance and moderation are the values

- Detailed formal rules necessary but not respected

- Conservatism, extremism, law and order are the values

Table 4: Uncertainty avoidance scores Asian Zone European Zone

Japan: 92

South Korea: 85

PRC: 39

France: 86

Sweden: 29

Germany: 65

Italy: 75

Index 100 is for country with high uncertainty avoidance.

250 Itim International, http://www.geert-hofstede.com/, last modified 2003, accessed 06/05/25

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III

3. Individualism versus collectivism

Table 5: Main characteristics of individualism and collectivism dimensions Individualism Collectivism

- Guilt culture, “I” is highlighted - Individuals are more important

than the group

- Shame culture, “we” is highlighted - The group is more important than

the individual

Table 6: Individualism versus collectivism scores Asian Zone European Zone

Japan: 46

South Korea: 18

PRC: 10

France: 71

Sweden: 71

Germany: 67

Italy: 76

Index 100 is for country with high individualism.

4. Masculinity versus femininity

Table 7: Main characteristics of masculinity and femininity dimensions Masculinity Femininity

- Progress and material success are important values

- "Achievement society" - The elite sets the standard

- Preservation of resources, consideration and care are important values

- The average achievement becomes the standard

- Welfare society

Table 8: Masculinity versus femininity scores Asian Zone European Zone

Japan: 95

South Korea: 39

PRC: 50

France: 43

Sweden: 5

Germany: 66

Italy: 70

Index 100 is for country with high masculinity.

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IV

Appendix 2: Trompenaars’ dimensions 251

1. Universalism versus particularism

Table 9: Main characteristics of universalism and particularism dimensions Universalism Particularism

- People focus more on rules than on relationships

- There is only one truth or reality

- People focus more on relationships than on rules

- There are several perspectives on reality relative to each participant

Table 10: Universalism versus particularism scores* Asian Zone European Zone

Japan: 62%

South Korea: 42%

PRC: 51%

France: 63%

Sweden: 74%

Germany: 74%

Italy: 62%

The closer to 100% the result is, the more Universalist the country is.

2. Neutral versus affective

Table 11: Main characteristics of neutral and affective dimensions Neutral Affective

- Emotional state hidden or internalised

- People do not express what they think or feel

- There is a discomfort with physical contact outside “private” circle (family or close friends)

- Embarrassed when displaying of emotion

- Discreet in verbal and non-verbal expressions

- Immediate reactions shown either verbally or non-verbally

- Active body language with expressive face and body signals

- Physical contact is easy and natural

- Raise voice easily

251 Trompenaars F. and Hampden-Turner C, 1993/1997, pp 35-39

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V

Table 12: Neutral versus affective scores* Asian Zone European Zone

Japan: 74%

South Korea: unknown

PRC: 55%

France: 30%

Sweden: 46%

Germany: 35%

Italy: 33%

The closer to 100% the result is, the more neutral the country is.

3. Specific versus diffuse

Table 13: Main characteristics of Specific and Diffuse dimensions

Table 14: Specific versus diffuse scores* Asian Zone European Zone

Japan: 58%

South Korea: 50%

PRC: 25%

France: 84%

Sweden: 90%

Germany: 79%

Italy: 75%

The closer to 100% the result is, the more specific the country is.

* All the results are made thanks to an average of the answers given during Trompenaars and Hampden-

Turner’s studies (when all the questions act in the same way of the “opposition concepts”).

Specific Diffuse

- Public space is more “open” whereas private space is more “closed”

- Appears direct, open and extrovert - Work and private life separated

- Public space more “closed” and private space is more “open” as soon as you are in

- Appears indirect, closed and introvert

- Work and private life are often closely linked

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VI

Appendix 3: country-, company- and brand-related

product image

Figure 8: Several layers of country-, company- and brand-related product image252

252 Usunier, J-C, 1992/2000, figure 10.1 p 318

Global image of products in terms of domestic goods and foreign goods

Imported versus domestic

Country (or country-based, or country-related) image of the generic product

Neutral

More or less specific national

image

Connotes several different countries

“regional” image

Corporate image diffused by the producer

Image related to its nationality

Corporate image as such

Brand image

Neutral Brand Brand with a specific linguistic connotation (linguistically country-

connotative brand)

“Made-In” related product image (product image based on the “made-in” label)

National versus international

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VII

Appendix 4: Principal coordinated analysis for col ours

association in PRC

Figure 9: Principal coordinated analysis for colours association in PRC253

253 Madden T. J., K. Hewett, M. S., Roth, 2000, pp 90-107

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VIII

Appendix 5: Differences in the packaging

Figure 10: “True match” foundation in Japan

Figure 11: “True match” foundation in UK

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IX

Appendix 6: Differences in the L’Oréal Paris websi tes

Figure 12: First page of the French web site

Figure 13: First page of the Chinese web site

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X

Figure 14: One of the two first pages of the Japanese web site

Figure 15: One of the two first pages of the Japanese web site